This paper analyses theoretically and empirically how employment subsidies should be targeted. We contrast measures … efficiency" (AWE). Thereby we can identify policies that (a)improve employment and welfare, (b)do not raise earnings inequality …

work fall and consequently their employment chances fall. In this way, temporary recessions may come to have permanent … effects on aggregate employment. We also show that these permanent effects, along with the underlying identity switches, can …

In this paper we analyse the employment implications of firing restrictions. We find that when a recession is expected … is a negative effect on average employment. When, on the other hand, a boom is expected and the rate of productivity … growth is large, firing costs affect mainly the firing decision. Then, as a result, average employment is increased. Our …