Cyclopedia Of Economics 1st edition


IIIb. Enhancing Employability



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IIIb. Enhancing Employability

In most such schemes, the state participates in the wage costs of newly hired formerly unemployed workers - more with every year the person remains employed. Employers usually undertake to continue to employ the worker after the state subsidy is over. Another ploy is linking the size of investment incentives (including tax holidays) to the potential increase in employment deriving from an investment project. Using these methods, Israel succeeded to absorb more than 400,000 working age immigrants from Russia in the space of 5 years (1989-1994) - while reducing its unemployment rate.






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