Redistribution and Employment Policies with Endogenous Unemployment

Robin Boadway, Katherine Cuff and Nicolas Marceau

No 121, Cahiers de recherche CREFE / CREFE Working Papers from CREFE, Université du Québec à Montréal

Abstract: We study the features of optimal transfers to the non-employed which include those unable to work, the voluntarily unemployed, and the involuntarily unemployed. Both voluntary and involuntary unemployment are endogenous. We analyze optimal government policies in the presence of two types of involuntary unemployment, frictional and that induced by efficiency wages. We consider how the quality of the government's information affects policies and also study time-consistent policies. The models are simple, yet rich enough to reflect real-world policies, including transfers to the disabled, welfare for non-working employables, unemployment insurance, employment subsidies, and taxes on workers and firms.

Nous étudions les transferts aux sans-emploi, lesquels peuvent être incapables de travailler, chômeurs volontaires ou chômeurs involontaires. Le nombre de chômeurs volontaires et involontaires est endogène. Nous caractérisons les politiques gouvernementales optimales pour le cas où le chômage involontaire est frictionnel et pour celui où il est causé par des salaires efficaces. Nous étudions la cohérence temporelle des politiques et l'impact qu'a sur elles la qualité de l'information à la disposition du gouvernement. Comportant des transferts aux non-employables, de l'aide sociale aux sans-emplois capables de travailler, de l'assurance-chômage, des subventions à l'emploi et des taxes payées par les firmes et les travailleurs, les modèles étudiés sont simples mais demeurent néanmoins de bonnes représentations de la réalité.

Keywords: Redistribution; Employment Policies; Unemployment (search for similar items in EconPapers)
JEL-codes: H2 J6 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2000-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Redistribution and employment policies with endogenous unemployment (2003)
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