Does Active Labour Market Policy Reduce Unemployment when Search is Endogenous?

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.

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Year of publication:	2000
Authors:	Filges, Trine ; Larsen, Birthe
Publisher:	Frederiksberg : Copenhagen Business School (CBS), Department of Economics
Subject:	Endogenous Search \| Active Labour Market Policy \| Unemployment

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Series:	Working paper ; 14-2000
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	32316241X [GVK] hdl:10419/208436 [Handle] hdl:10398/7515 [Handle] RePEc:hhs:cbsnow:2000_014 [RePEc]
Classification:	J41 - Contracts: Specific Human Capital, Matching Models, Efficiency Wage Models, and Internal Labor Markets ; J64 - Unemployment: Models, Duration, Incidence, and Job Search ; J68 - Public Policy
Source:	EconStor

Persistent link: https://www.econbiz.de/10012142237