We develop a money-in-the-utility-function model with two features. One is that a Phillips curve relationship between nominal wages and unemployment appears because of efficiency wages. The other is that as in the Japanese economy since the early 1990s, unemployment attributable to aggregate...

This paper analyses theoretically and empirically how employment subsidies should be targeted. We contrast measures involving targeting workers with low incomes/abilities and targeting the unemployed under the criteria of "approximate welfare efficiency" (AWE). Thereby we can identify policies...

We model how unemployment benefit sanctions - benefit reductions that are imposed if unemployed do not comply with job search guidelines - affect unemployment. In our analysis we find that not only micro effects concerning the behavior of individual unemployed workers are relevant, but also...

Im Laufe der letzten Jahre werden vor dem Hintergrund der anhaltenden und weiterhin ansteigenden hohen Arbeitslosigkeit arbeitsmarkt- und beschäftigungspolitische Instrumente diskutiert, die nicht - wie meist üblich - an der Arbeitsmenge, sondern am Preis für Arbeit ansetzen. Zu diesen...

Government schemes that compensate workers for the loss of income while they are on short hours (known as short-time work compensation schemes) make it easier for employers to temporarily reduce hours worked so that labor is better matched to output requirements. Because the employers do not lay...

We consider positive and normative aspects of subsidizing work arrangements where subsidies are paid in time of low demand and reduced working hours so as to stabilize workers' income. In a matching framework such an arrangement increases labor demand. Tightening eligibility to short-time work...

This book examines the effectiveness of active labour market policies and their contribution to the prevention of social exclusion. The evaluation studies reported in this volume focus on two aspects of active labour market policies that have been relatively neglected in previous research and...