and examine the effectiveness of three employment policies in this context: (i) a weakening of workers' position in wage …) training subsidies. We show that the employment effects of these policies depend crucially on whether low-productivity traps …

work habits. We develop a model along these lines, which allows us to bridge the gap between high macroeconomic employment … the effectiveness of three employment policies in this context: (i) a weakening of workers' position in wage negotiations …) training subsidies. We show that the employment effects of these policies depend crucially on whether low-productivity traps …

improve employment incentives without significant changes in the current redistribution scheme. We provide a detailed account …

This paper provides a theoretical and quantitative analysis of various types of wellknown employment subsidies. Two … important questions are addressed: (i) How should employment subsidies be targeted? (ii) How large should the subsidies be? We …) improve employment and welfare, (b) do not raise earnings inequality and (c) are self-financing. This criterion enables us to …

to all low-wage earners regardless of their employment history and are of limitless duration. Our analysis indicates that … workers are (i.e. the more their wages rise with employment duration), the more effective will unemployment vouchers be …

This paper provides a theoretical and quantitative analysis of various types of wellknown employment subsidies. Two … important questions are addressed: (i) How should employment subsidies be targeted? (ii) How large should the subsidies be? We …) improve employment and welfare, (b) do not raise earnings inequality and (c) are self-financing. This criterion enables us to …

improve employment incentives without significant changes in the current redistribution scheme. We provide a detailed account …