DOES ACTIVE LABOUR MARKET POLICY REDUCE UNEMPLOYMENT WHEN SEARCH IS ENDOGENOUS?

We analyse the effects active labour market programmes (ALMPs) have on unemployment in a union wage-setting framework when search is endogenous. We assume that a union president, elected by majority voting determines the wage. We analyse the case where ALMPs increase match efficiency of the marginalized workers, and show that ALMPs may increase unemployment.

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Year of publication:	2000-09-01
Authors:	Filges, Trine ; Larsen, Birthe
Institutions:	Økonomisk Institut, Copenhagen Business School
Subject:	Endogenous Search \| Active Labour Market Policy \| Unemployment

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Working Paper Series Number 14-2000 29 pages
Classification:	J41 - Contracts: Specific Human Capital, Matching Models, Efficiency Wage Models, and Internal Labor Markets ; J64 - Unemployment: Models, Duration, Incidence, and Job Search ; J68 - Public Policy
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005419425