average than the unemployed do. Second, changes in the employment rate, a central factor explaining variation in total hours …

We analyze the effects of various labor market policies on job creation, job destruction, and employment. The framework … consider the equilibrium effects of a hiring subsidy, a payroll tax reduction, and an employment subsidy. While calibrating … parameters that characterize these policies, we try to mimic the policies in the Hiring Incentives to Restore Employment (HIRE …