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Pré-Publication, Document De Travail Année : 2014

Can active labor market policy be counter-productive?

Résumé

We study active labor market policies (ALMP) in a matching model. ALMPs are modelled as a subsidy to job search. Workers di¤er in their productivity, and search takes place along an extensive margin. An additional job seeker a¤ects the quality of unemployed workers. As a result, the Hosios conditions are no longer valid. To replicate the optimum the worker share in bargaining must exceed the Hosios level, and one must impose a tax on job search activity. The coalition in favor of ALMP is also studied.
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Dates et versions

hal-01084570 , version 1 (19-11-2014)

Identifiants

  • HAL Id : hal-01084570 , version 1

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Gilles Saint-Paul. Can active labor market policy be counter-productive?. 2014. ⟨hal-01084570⟩
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