Employment Subsidies, Unemployment and Monopolistic Competition

This paper studies the impact of employment subsidies in a simple macroeconomic model with imperfect competition and unemployment due to wage rigidity. COmputed with a simple formula that is robust to the specification of imperfect competition and wage rigidity, subsidies can make an economy reach the Walrasian equilibrium. Moreover, theintroduction of employment subsidies can reduce unemployment without harming net real incomes, government budget or inflation.

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Year of publication:	1998
Authors:	Fleurbaey, M.
Institutions:	Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor.
Subject:	EMPLOYMENT \| SUBSIDIES \| MONOPOLIES \| COMPETITION \| UNEMPLOYMENT

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Series:	Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
Type of publication:	Book / Working Paper
Notes:	46 pages
Classification:	D6 - Welfare Economics ; E6 - Macroeconomic Policy Formation, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook ; E24 - Employment; Unemployment; Wages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005474732