Davidson, Carl; Woodbury, Stephen A. - W.E. Upjohn Institute for Employment Research - 1995
paper, we model and simulate the impacts of a wage-rate subsidy (or salary supplement) program in which a dislocated worker … who becomes reemployed would receive a payment equal to one-half the difference between the wage previously earned and the … wage currently earned. The simulations are based on a search model that is institutionally rich and that provides estimates …