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Friday, September 29, 2023
HomeLatest NewsFedea asks that assistance subsidies be compatible with employment

Fedea asks that assistance subsidies be compatible with employment

Date: September 29, 2023 Time: 10:05:29

The Foundation for Applied Economics Studies (Fedea) considers it “fundamental” to modify the current design of assistance benefits in order to introduce incentives for searching for a job, so that the perception of the benefit can be made compatible, at least in one way. part, with the collection of a salary.

In a work prepared by José Ignacio Conde-Ruiz and Jesús Lahera, members of Fedea, on the challenges of the labor market in the coming decades, the organization points out that, given the displacement of workers to unemployment that the technological revolution will imply, Spain will need policies passive “that have strong incentives to search for employment.”

According to Fedea, the loss (or fall) of the subsidy if a job is accepted means that many recipients do not want to accept jobs, especially if they are temporary or part-time. “This would explain why in many tourist areas where there is a high level of unemployment there are problems filling vacancies,” says Fedea, who adds that this situation is also occurring in the domestic sector.

As indicated in the report, in the past these workers were accommodated in the labor market irregularly and without putting their benefits at risk. “Now, thanks to the necessary advances of the Inspection, this possibility is ruled out and their incorporation into the labor market is stopped,” he adds.

The in-depth report

Fedea highlights in this report, to which Europa Press has had access, that, according to international evidence, it permanently makes it possible to make benefits and salaries compatible, increases coverage, boosts employment and reduces the structural unemployment rate. In this sense, remember that in the Minimum Vital Income (IMV) an employment incentive has been introduced, since it allows the benefit and salary to be made compatible, but only for one year or at most two, a period that, for Fedea, is “clearly insufficient”, since “no one risks the loss of the IMV under these conditions.”

Thus, the authors of this study advocate making the receipt of the benefit, at least in part, compatible with the salary, so that the benefit can be received as long as income remains below a certain threshold. If income exceeds the established threshold, the benefit would be gradually reduced or completely suspended. “This measure ensures that people with lower incomes continue to receive the necessary support, while encouraging them to look for work and increasing income,” defends Fedea.

In this way, the subsidy would be added to the worker’s salary, becoming a salary supplement. In any case, Fedea emphasizes that in the implementation of this new design there must be monitoring and verification systems to guarantee compliance and avoid abuse or fraud.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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