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Can active labor market policy be counter-productive?

Gilles Saint-Paul

PSE Working Papers from HAL

Abstract: We study active labor market policies (ALMP) in a matching model. ALMPs are modelled as a subsidy to job search. Workers di¤er in their productivity, and search takes place along an extensive margin. An additional job seeker a¤ects 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 As a result, the Hosios conditions are no longer valid.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.

Keywords: Active labor market policy; Matching models (search for similar items in EconPapers)
Date: 2014-11
New Economics Papers: this item is included in nep-dge and nep-ger
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Journal Article: Can active labor market policy be counter-productive? (2015) Downloads
Working Paper: Can active labor market policy be counter-productive? (2015)
Working Paper: Can active labor market policy be counter-productive? (2015)
Working Paper: Can active labor market policy be counter-productive? (2014) Downloads
Working Paper: Can active labor market policy be counter-productive? (2014) Downloads
Working Paper: Can Active Labor Market Policy Be Counter-Productive? (2014) Downloads
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