Faut-il inciter l'offre ou la demande de travail peu qualifié ?

Pierre Cahuc and Etienne Lehmann ()

Revue économique, 2002, vol. 53, issue 6, 1305-1327

Abstract: We use dynamical job search matching framework to compare the effects of two policies targeted on low skilled jobs paid at a the minimum wage : reductions of employers? contributions to social security versus reductions of taxes paid by employees such as the « Prime pour l?Emploi ». Our approach integrates simultaneously job search behaviour and frictional unemployment, contrary to previous literature. This type of model allows us to deal with effects of policies on unemployment rate, employment rate and welfare. Our results suggest that reducing employers contributions has larger effects on unemployment rate and unemployment spell, whereas redducing taxes paid by employees has larger effects on participation rates and welfare. Classification JEL : J64, J65

JEL-codes: J64 J65 (search for similar items in EconPapers)
Date: 2002
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