Career Paths, Unemployment, and the Efficiency of the Labor Market: Should Youth Employment Be Subsidized?
This paper studies the implications of learning-by-doing on youth unemployment and market efficiency when workers benefiting from this kind of training experience search (while on the job) for a higher skill job. Firms with low-skill jobs suffer from a poaching behavior by firms with high-skill jobs, causing a shortage of low-skill jobs and excessive youth unemployment. An optimal policy, consisting of taxing the output of high-skill jobs and subsidizing the output of low-skill jobs, restores market efficiency and reduces youth unemployment. Copyright © 2010 Wiley Periodicals, Inc..
Year of publication: |
2010
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Authors: | GAVREL, FRÉDÉRIC ; LEBON, ISABELLE ; REBIÈRE, THERESE |
Published in: |
Journal of Public Economic Theory. - Association for Public Economic Theory - APET, ISSN 1097-3923. - Vol. 12.2010, 3, p. 533-560
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Publisher: |
Association for Public Economic Theory - APET |
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