A treatise on labour. A matching-model analysis of labour-market programmes

Labour-market programmes are often put forward as a means of reducing unemployment; but they are not without problems. Programmes may lead to crowding out of regular employment and may even have the adverse effect of increasing unemployment. This thesis looks theoretically at how labour-market programmes can be used within a matching-model context. Various model set ups are used and the overall result of this thesis is that programmes can crowd in or crowd out regular employment, depending on the structure of the labour market. Crowding in is only guaranteed when programmes are used as a means of reducing the level of unemployment benefits in the economy.