Labor Policy in a Dynamic Search-Matching Model with Heterogeneous Workers and Firms

Jeremy Lise, Jean-Marc Robin and Julien Pascal
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Julien Pascal: Sciences Po

No 341, 2018 Meeting Papers from Society for Economic Dynamics

Abstract: We introduce a minimum wage in Lise, Robin. We could also introduce a labor tax on output p and use is to finance unemployment. Budget balanced in the long run. Questions are: 1) Optimal minimum wage – starting from our estimates in Lise, Robin, which could be interpreted as corresponding to an economy without a legal minimum wage. 2) Optimal conduct of labor policy across the business cycle.

Date: 2018
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