Subsidies on low-skilled workers’ social security contributions: the case of Belgium

In recent decades, many “Making Work Pay” policies have been implemented in OECD countries. These policies aim at improving the financial incentives for work, while maintaining high levels of social protection. Examples include the Earned Income Tax Credit in the USA and the Working Families’ Tax Credit in the UK. While these policies are proven to be quite effective with respect to poverty alleviation, many worry that they may discourage labor supply on the intensive margin. We consider an alternative measure implemented in Belgium: the Workbonus, which subsidizes social security contributions for low-skilled workers. This program differs from other measures in that the eligibility and the level of the subsidy are based on full-time equivalent earnings. The instrument therefore distinguishes between low skill and low effort and avoids the above-mentioned disincentive effect. We assess the effects of the Workbonus on labor supply using a particular discrete-choice labor supply model, in which individuals are assumed to choose among jobs belonging to individual-specific latent choice sets. In particular, we compare the Workbonus with a tax credit system temporarily implemented in Belgium in 2001–2004. Results show that both measures have a positive impact on labor supply. However, the Workbonus is more efficient in terms of cost per additional full-time equivalent position created and avoids the “part-time trap” implicit in the tax credit system.     

The impact of citizens' groups on urban policies: towards a contextual analysis

Book reviewed in this article: Castells, M., Cherki, E., Godard, F. and Mehl, D. 1978: Crise du logement et mouvements sociaux urbains; enquěte sur la région parisienne. Godbout, J. and Collin, J.-P. 1977: Les organismes populaires en milieu urbain: contre-pouvoir ou nouvelle pratique professionnelle? Abu Lughod, J. and Hay, J. R. 1977: Third world urbanization. Costello, V. G. 1977: Urbanization in the Middle East. Aubin, H. 1977: City for sale.     

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Family Vs. Non-Family Business Owners’ Commitment to Their Town: A Multigroup Invariance Analysis

This study examines differences between family-owned and non-family-owned small and medium tourism enterprises (SMTEs) operating in regional tourism destinations. The research focuses on SMTE owners' commitment to stay in the town in which they are embedded. Based on samples of family (N?=?157) and non-family (N?=?141) businesses in regional South Australia, was used to test the construct validity of SMTE owners' “commitment to stay”. Multigroup invariance was used to test the factorial equivalence of scores from the commitment model across family and non-family businesses. Results support the validity of the “commitment to stay” CFA model. Multigroup invariance analysis suggests family business owners have a greater commitment to staying in their town. These results contribute to our understanding of the unique objectives and behaviours of family businesses in tourism as well as present important implications to destination managers aiming to support sustainable entrepreneurial development.