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The government controls for some indirect incentives in safety net social programs by

The government controls for some indirect incentives in safety net social programs by

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Answer #1

The government can do so by restricting or minimizing payments for a time period.

Indirect incentive appears if people think that the receiving of government assistance (like an unemployment benefit) is permanent, rather considering it as safety net. Such thinking is bad for the society. The government can control it by limiting payments – once this has been done people would start thinking that the assistance is not permanent and they should start searching jobs.

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