Story thread · 3 reports / 2 sources

Incentives Matter

powerlineblog.com · 14dShare

My friend John Phelan, probably quoting another famous economist, says that the discipline of economics can be summed up in the phrase “incentives matter.” An illustration of this principle is that if you pay people to be disabled, they will become disabled. This is from the London Times: Teenagers claiming sickness benefits for anxiety receive £100 a week more than those who take a part-time job on the minimum wage.

First report: Young people 'who work part-time on minimum wage earn £100 less than those claiming sickness benefits' — dailymail.co.uk, 15d