Brown, Alessio J. G.; Merkl, Christian; Snower, Dennis J. - 2010 - October 2010 (this final and revised version)
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 …