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http://hdl.handle.net/10419/46031
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| Title: | | In-work benefits and unemployment  |
| Authors: | | Tonin, Mirco Kolm, Ann-Sofie |
| Issue Date: | | 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: | | urn:nbn:de:101:1-201104113462 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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