Freud Review shows little understanding of the issues

Mark Wadsworth Tue Mar 06, 2007 at 02:50:45 PM GMT Print-friendly version Facebook

According to page 9 of the summary, the UK has "virtually eliminated the unemployment trap"



See http://www.dwp.gov.uk/publications/dwp/2007/wr-exec-summary.pdf

The way I understand it, "unemployment trap" means that welfare and tax systems interact such that benefit claimants are little or no better off if they take on low-paid work.

Which is exactly the situation that we have, e.g. total marginal withdrawal rates of around one-hundred percent, even ignoring travel costs and so on.

So somebody has overlooked something somewhere. Any thoughts?


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Freud Review shows little understanding of the issues | 2 comments (2 topical)

Re: Freud Review shows little (#1)

by Glass House on Tue Mar 06, 2007 at 03:49:48 PM GMT

I'm currently reading Freud's report alongside that "Reform" one that came out a while back.

Trying to work out exactly how they came to opposite conclusions


Re: Freud Review shows little (#2)

by Mark Wadsworth on Tue Mar 06, 2007 at 04:02:43 PM GMT

We have discussed Reform report before, to my mind that was authoritarian "cut their benefits if they don't find jobs" nonsense (albeit that the author Nicholas Boys Smith is an otherwise decent bloke) and so not dissimilar to this.

Where do see them coming to opposite conclusions?


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Freud Review shows little understanding of the issues | 2 comments (2 topical)