The search-matching model is well suited for an equilibrium evaluation of labor market policies. When those policies … are targeted on some groups, the usual juxtaposition of labor markets is however a shortcoming. There is a need for a … labor market and fiscal policies. Simulation results focus on the effects of employment subsidies and in-work benefits and …

Several European countries have reformed their labor market institutions. Incentive effects of unemployment benefits … levels and labor productivity. In our model, a higher level of unemployment benefits improves the works position in wage … bargaining, leading to stronger effort incentives and higher output. However, it also reduces incentives for labor market …

the worker, severance-induced firing cost concerns on excessive labor hoarding by firms. A single period private … emerge. The absence of separation benefits of any kind leads to excessive labor hoarding as a primitive form of earnings …

Several European countries have reformed their labor market institutions. Incentive effects of unemployment benefits … levels and labor productivity. In our model, a higher level of unemployment benefits improves the workers' position in wage … bargaining, leading to stronger effort incentives and higher output. However, it also reduces incentives for labor market …

among the long-tenured displaced is seriously incomplete, at least in lightly regulated labor markets. Unemployment and …