After taking aggregate feedbacks into account, their simulations suggest that low income earners would be better off under the present system.
Others have systems that are much larger, promising high replacement rates to all workers, even high earners.
However, between the years 1992-1997, high-income earners were less willing to spend tax-money on unemployment benefits.
This means however, that the absolute amount of the 'family subsidy', particularly for sole earner couples, increases with higher income.
Targeting toward low earners may therefore reward low labor force participation.
Secondly, there was no need to introduce the current higher support for earners of higher incomes.
In this paper, we focus on the most plausible case, in which the budget constraint (2) is binding for only middle-aged low-income earners.
Their leaders questioned why derivation was given emphasis only when the major revenue earners for the federation (then agricultural commodities) were derived from majority areas.
