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 …

The paper examines the employment and unemployment implications of permitting unemployed people to use part of their … unemployment benefits to provide employment vouchers to the firms that hire them. This opportunity to transfer unemployment … benefits, `benefit transfers', would help replace the unemployment trap by providing an incentive to seek and provide jobs. The …

opportunity to use part of their unemployment benefits to provide employment vouchers to the firms that hire them. The vouchers … would depend positively on unemployment duration and training. The paper argues that this policy would give unemployed … failures generated and amplified by unemployment benefit systems. A simple theoretical model is presented, followed by …

This Paper presents a reappraisal of unemployment movements in the European Union. Our analysis is based on the chain … reaction theory of unemployment, which focuses on (a) the interaction among labour market adjustment processes, (b) the … unemployment responses to each shock. Our analysis permits us to distinguish between the short- and long-run effects of the shocks …

This paper explores the two common concepts of the natural rate of unemployment: (i) the stable, long-run equilibrium … rate of unemployment; and (ii) the equilibrium unemployment rate at which there is no tendency for this rate to change … towards which the equilibrium unemployment rate tends with the passage of time). Specifically, it is not a reference point in …

This paper evaluates two theories of unemployment: the natural rate theory (whereby unemployment is depicted as … fluctuating around a reasonably stable natural rate) and the chain reaction theory (which views movements in unemployment as the … unemployment not only in the short run, but in the long run as well. The reason is that, in the presence of growing exogenous …

This paper views movements in unemployment as the result of the interaction between: (a) lags in labour market … decisions; and (b) labour market shocks with temporary and permanent components. Two features of unemployment dynamics are … examined: (i) `unemployment persistence', arising when temporary shocks have persistent effects on unemployment; and (ii …

in immigration selection criteria and other policy settings, as well as in the macroeconomic employment conditions at …

This paper investigates the dynamic relationship between self-employment and unemployment rates. On the one hand, high … rates of self employment may indicate increased entrepreneurial activity reducing unemployment in subsequent periods (the … two distinct relationships between unemployment and self-employment: the 'refugee' and 'entrepreneurial' effects. We also …

The paper surveys unemployment policies for advanced market economies and evaluates them by examining the predictions … of the underlying macroeconomic theories. The basic idea is that, for the most part, different unemployment policy … - on the ability of these theories to predict some salient stylized facts about unemployment behaviour. The paper considers …