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Title:Labor market policy evaluation in equilibrium: some lessons of the job search and matching model PDF Logo
Authors:Cahuc, Pierre
Barbanchon, Thomas Le
Issue Date:2008
Series/Report no.:IZA discussion papers 3687
Abstract:We analyze the consequences of counseling provided to job seekers in a standard job search and matching model. It turns out that neglecting equilibrium effects induced by counseling can lead to wrong conclusions. In particular, counseling can increase steady state unemployment although counseled job seekers exit unemployment at a higher rate than the non-counseled. Dynamic analysis shows that permanent and transitory policies can have effects of opposite sign on unemployment.
Subjects:Evaluation
equilibrium effect
labor market policy
JEL:J64
Persistent Identifier of the first edition:urn:nbn:de:101:1-2008100855
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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