We analyze the effects of various labor market policies on job creation, job destruction, and employment. The framework of Mortensen and Pissarides (2003) is used to model the dynamic interaction between firms and workers and to simulate their responses to alternative policies. The equilibrium...

We analyze the effects of various labor market policies on job creation, job destruction, and employment. The framework of Mortensen and Pissarides (2003) is used to model the dynamic interaction between firms and workers and to simulate their responses to alternative policies. The equilibrium...

The aim of the wage subsidy program in Hamburg is to encourage the creation of low wage jobs for unemployed persons with poor labor market opportunities. If a firm hires an unemployed job seeker, both the employer and the employee each receive a monthly wage subsidy of 250 Euros in the first ten...