Labour costs and employment policy

Citation

Hart RA & Ruffell R (1998) Labour costs and employment policy. National Institute Economic Review, 165 (1), pp. 99-108. http://www.scopus.com/inward/record.url?partnerID=yv4JPVwI&eid=2-s2.0-79959356095&md5=353dd41df89bf19e0d533cd4b27a0023; https://doi.org/10.1177/002795019816500112

Abstract
Under the Government's New Deal proposals to help create jobs for the young unemployed, employers are offered margtnal employment subsidies. Such interventions involve relative changes in the firm's fixed and variable labour costs. In turn, cost changes have implications for both employment and hours of work. This study examines possible strengths and weaknesses of employment policies that are designed to price young unemployed into jobs by reducing related labour costs. It focuses on one such intervention, the major restructuring of employers' National Insurance Contributions (NICs) in the 1985 Budget. This is then linked to the New Deal measures.

Journal
National Institute Economic Review: Volume 165, Issue 1