Can active labor market policy be counter-productive?

Pré-publication, Document de travail: 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 As a result, the Hosios conditions are no longer valid.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.

Auteur(s)

Gilles Saint-Paul

Date de publication
  • 2014
Mots-clés JEL
E24 J6
Mots-clés
  • Active labor market policy
  • Matching models
Référence interne
  • PSE Working Papers n° 2014-38
Pages
  • 33 – 43
Version
  • 1
Volume
  • 33