these could include tax incentives and other relevant measures inwork benefits can translate into potentially significant increases in employment rates provided they have a sufficiently large impact on financial incentives when inwork benefits are very low they are unlikely to have much of an impact on employment on the other hand generosity has to be accompanied by narrow targeting in order to channel help to the neediest families and keep programme costs within reasonable limits welldesigned targeting conditions on the number of hours worked to become eligible and phasingout rates ie the speed at which benefits are w ithdrawn as incomes rise can help them to be effective in terms of the impact on competitiveness some research points to the role of social enterprises and a vibrant social economy as a whole in encouraging innovation