Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/33666
Authors: 
Cardullo, Gabriele
van der Linden, Bruno
Year of Publication: 
2006
Series/Report no.: 
IZA Discussion Papers 2073
Abstract: 
The search-matching model is well suited for an equilibrium evaluation of labor market policies. When those policies are targeted on some groups, the usual juxtaposition of labor markets is however a shortcoming. There is a need for a setting where workers' productivity depends on employment levels in all markets. This paper provides such a theoretical setting. We first develop a streamlined model and then show that it can be extended to deal with interactions among various labor market and fiscal policies. Simulation results focus on the effects of employment subsidies and in-work benefits and on their interactions with the profile of unemployment benefits and with active labor market programs.
Subjects: 
unemployment
search-matching equilibrium
wage bargaining
reductions of social security contributions
unemployment insurance
labor market programs
JEL: 
E24
J3
J41
J64
J65
J68
Document Type: 
Working Paper

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