Remark: The reservation wage effect is as follows. When vacancies with net income higher than B are registered, then the relevant unemployment benefits are simply scratched. This mimics the array of measures needed for continuous reality.
Remark: This definition implies that people working with subsidies in the Swedish/Japanese case are not on ‘benefit’. Such subsidies thus must be accounted differently, basically as part of taxes.
Remark: The black economy (another form of working while on welfare) is neglected. We neglect also the case that some people hate being on welfare, and thus continue working even when their net earnings are below the benefit threshold (S < net earnings < XB ).
Definition: A welfare state is bhl iff it remains meaningful to trisect its membership into the economic classes of Low and High productivity workers and permanent Benefit recipients.
Definition: A welfare state is nonrevolutionary, iff its economic classes and their data are stable across the change of employment regime.
Definition: A welfare state is BHL iff it is bhl and nonrevolutionary.
Remark: Denote High and Low gross productivity as H and L. Note that B is net. Also bhl-ness technically implies H >> L
B.
Remark: L may be associated with a minimum wage and H with some average income including profits.