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Dansk Økonomi Efterår 2006 - De Økonomiske Råd

Dansk Økonomi Efterår 2006 - De Økonomiske Råd

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alternative is to prescribe a lower starting wage rate for newimmigrants and persons on long-term social assistance for adefined limited period.A wage subsidy to people on social assistance is also ameans of creating a more firm attachment to the labourmarket for this group. It is recommended that recipients ofsocial assistance with modest qualifications should beemployed as quickly as possible with a wage subsidy.If it is possible to integrate the poor into the labour market,poverty is reduced and labour supply increased. Hence,society gains from preventing and reducing poverty.334

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