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Many welfare-to-work programs in both North America and Europe are directed at making work pay for the low skilled. This paper identifies two alternative policies that are motivated by this same objective active labour market programs that involve wage subsidies together with improved job...
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To examine the macro economic effects of government tax and punishment policies, this paper develops a three-sector general quilibrium model featuring matching frictions, heterogenous abilities and an informal sector with tax evasion. The choice of education is determined endogenously. Job...
Persistent link: https://www.econbiz.de/10011575188
This paper is concerned with social interactions and their importance for unemployment. A theoretical model is … specified in which the psychological costs of unemployment depend upon the unemployment level. The analysis reveals social … multiplier effects, and shows that multiple unemployment equilibria may emerge. Data on all 20- to 24-year-olds living in …
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