Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/104698
Authors: 
Saint-Paul, Gilles
Year of Publication: 
2014
Series/Report no.: 
IZA Discussion Papers 8551
Abstract: 
We study active labor market policies (ALMP) in a matching model. ALMPs are modelled as a subsidy to job search. Workers differ in their productivity, and search takes place along an extensive margin. An additional job seeker affects 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 As a result, the Hosios conditions are no longer valid.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.
Subjects: 
active labor market policy
matching models
JEL: 
E24
J6
Document Type: 
Working Paper

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