Fleurbaey, M. - Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor. - 1998
This paper studies the impact of employment subsidies in a simple macroeconomic model with imperfect competition and … wage rigidity, subsidies can make an economy reach the Walrasian equilibrium. Moreover, theintroduction of employment … subsidies can reduce unemployment without harming net real incomes, government budget or inflation. …