Filges, Trine; Kennes, John; Larsen, Birthe; Tranæs, Torben - In: Journal of Macroeconomics 33 (2011) 4, pp. 738-753
This paper studies optimal labour market policy in a society where differently gifted individuals can invest in training to further increase their labour market productivity and where the government seeks both efficiency and equity. Frictions in the matching process create unemployment and...