ABSTRACT
This chapter offers a larger perspective for measuring the benefits achievable by work, by also taking into account the inter-temporal nature of the calculus made by the unemployed and the fact that accepting employment today can modify future employment perspectives. It looks at the effects of an inactivity trap on incentives and equity. The chapter examines the consequences on economic policy recommendations that result from this dynamic perspective. The chapter looks at static and dynamic approaches on the rewards of accepting a job. It considers the consequences for carrying out economic policy. Theoretical and applied studies on financial incentives to go to work are generally limited to immediate gains associated with the return to employment or to the increase in work history, without taking into account the transitions of individuals on the labor market. Several economic policy recommendations are often put forward in order to "make work pay."
