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Can active labor market policy be counter-productive?

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 As a result, the Hosios conditions are no longer valid.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.
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Preprints, Working Papers, ...
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Submitted on : Wednesday, November 19, 2014 - 3:30:33 PM
Last modification on : Friday, April 29, 2022 - 10:13:02 AM
Long-term archiving on: : Friday, April 14, 2017 - 7:21:47 PM


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  • HAL Id : hal-01084570, version 1



Gilles Saint-Paul. Can active labor market policy be counter-productive?. 2014. ⟨hal-01084570⟩



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