"Life Cycle" Hypothesis of Saving: Aggregate ... - Arabictrader.com

An Economists’ Manifesto on Unemployment in the European Union 237
6. The condition must be formulated relative to the industry average, for otherwise the scheme would
be less effective in economic downturns—when the need for employment creation is greatest—than
in upturns.
7. This difference may be adjusted for average changes in employment within that sector. Specifically,
if sectoral employment is shrinking (expanding), then firms receive a number of vouchers
greater (less) than the difference between the number of unemployed people hired and the number of
employees fired. The reason for this adjustment is to avoid the possibility that the effectiveness of
the voucher policy may diminish as the sector falls into a recession.
8. This anti-displacement provision has been successfully tried in Australia.