System of employment of people with disabilities in the light of the concepts of Arthur Pigou and Roland Coase Cover Image

Wspieranie zatrudnienia osób z niepełnosprawnościami w świetle koncepcji Artura Pigou i Ronalda Coase
System of employment of people with disabilities in the light of the concepts of Arthur Pigou and Roland Coase

Author(s): Marcin Garbat
Subject(s): Economy, National Economy, Public Finances, Human Resources in Economy
Published by: Polskie Towarzystwo Ekonomiczne w Zielonej Górze
Keywords: osoby z niepełnosprawnościami; system wspierania zatrudniania; teoremat Coase; podatek Pigou; persons with disabilities; employment support system; Coase theorem; Pigou tax

Summary/Abstract: In 1960, Economist Ronald Coase published an article entitled "The Problem of Social Costs", which is still one of the most frequently cited economic texts and still raises lively discussions. He wrote there that the problem of external costs is twofold: negative external effects generated by one entity cause loss for another, but the suppression of injustice isautomatically a loss for the first one. He argued that in the case of well-defined property rights and low transaction costs, the problem of external effects can be solved through transactions between parties affected by these effects. This was in opposition to previous attempts to solve this problem through government regulation or taxation proposed by Arthur Pigou. In fact – looking through the prism of the system of supporting employment of people with disabilities – the solution is decision whether it is profitable to limit the employment of efficient people or financial resources of employers in order to provide work for less-efficient people with disabilities, or to leave these people without support on the labour market. In each case, it is about doing the least possible social damage. This article presents both concepts on the example of a system of supporting the employment of people with disabilities in Poland.

  • Issue Year: 5/2018
  • Issue No: 8
  • Page Range: 31-55
  • Page Count: 25
  • Language: Polish