Public Policy, Employment, and Welfare in an Efficiency Wage Model

This paper develops an efficiency wage model to highlight public policy for relieving unemployment. For the purposes of relief, we present unemployment benefits, public employment programs and wage subsidies. The results show that unemployment benefits have a negative effect on the employment rate, while public employment and wage subsidies have a positive effect. The impact of these policies on social welfare is also considered.

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Year of publication:	2006
Authors:	Hashimoto, Ken-ichi ; Kumagai, Taro
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 5.2006, 16, p. 1-11
Publisher:	AccessEcon

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Classification:	E6 - Macroeconomic Policy Formation, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook ; H2 - Taxation, Subsidies, and Revenue
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005182016