Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/46031
Authors: 
Tonin, Mirco
Kolm, Ann-Sofie
Year of Publication: 
2011
Series/Report no.: 
Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5473
Abstract: 
In-work benefits are becoming an increasingly relevant labour market policy, gradually expanding in scope and geographical coverage. This paper investigates the equilibrium impact of in-work benefits and contrasts it with the traditional partial equilibrium analysis. We find under which conditions accounting for equilibrium wage adjustments amplifies the impact of in-work benefits on search intensity, participation, employment, and unemployment, compared to a framework in which wages are fixed. We also account for the financing of these benefits and determine the level of benefits necessary to achieve efficiency in a labour market characterized by search externalities.
Subjects: 
in-work benefits
search
labour force participation
wage adjustment
JEL: 
J21
J38
H24
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
607.16 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.