Cost reduction, Macroeconomics

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Cost Reduction

Positive measures to effect a lowering of costs include: 

  1. reducing national insurance contributions (an ad valorem tax on employing labor);

  2. improving the supply and quality of labor, e.g. by developing training schemes, encouraging flexible working hours to attract part-time workers, improving mobility, granting subsidies to firms to locate in the Assisted Areas where surplus workers are available;

  3. providing advisory services.

 


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