The government wants to encourage individuals onwelfare to become employed. It is considering twopossible incentive programs:

a. Give firms $2 per hour for every individual on welfare who is hired.

b. Give each firm that hires one or more welfare workers a payment of $1000 per year, irrespective of the number of hires.

To what extent is each of these programs likely to be effective at increasing the employment opportunitiesfor welfare workers?