DOES ACTIVE LABOUR MARKET POLICY REDUCE UNEMPLOYMENT WHEN SEARCH IS ENDOGENOUS?

Trine Filges and Birthe Larsen
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Trine Filges: Department of Economics, Copenhagen Business School, Postal: Department of Economics, Copenhagen Business School, Solbjerg Plads 3 C, 5. sal, DK-2000 Frederiksberg, Denmark

No 14-2000, Working Papers from Copenhagen Business School, Department of Economics

Abstract: We analyse the effects active labour market programmes (ALMPs) have on unemployment in a union wage-setting framework when search is endogenous. We assume that a union president, elected by majority voting determines the wage. We analyse the case where ALMPs increase match efficiency of the marginalized workers, and show that ALMPs may increase unemployment.

Keywords: Endogenous Search; Active Labour Market Policy; Unemployment (search for similar items in EconPapers)
JEL-codes: J41 J64 J68 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2000-09-01
New Economics Papers: this item is included in nep-lab and nep-ltv
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Citations: View citations in EconPapers (1)

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