A Framework for Analysing the Political Support for Active Labour Market Policy

Gilles Saint-Paul

No 1205, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We develop a general equilibrium analysis of the impact of active labour market policy on unemployment, wages and the welfare of the employed. This framework is used to assess the political support in favour of such policies and to relate it to the working of such policies and other parameters characterizing the economic environment. The main finding is that if the employed have little exposure to unemployment and if the demand for unskilled labour is inelastic, there may be political support for policies which actually raise the equilibrium level of total unemployment.

Keywords: Labour Market Policy; Political Economy; Unemployment; Wage Formation (search for similar items in EconPapers)
JEL-codes: D72 D78 E24 J68 (search for similar items in EconPapers)
Date: 1995-06
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Citations: View citations in EconPapers (6)

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Related works:
Journal Article: A framework for analyzing the political support for active labor market policy (1998)
Working Paper: A Framework for Analyzing the Political Support for Active Labor Market Policy (1995)
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