Various types of basic income schemes are considered to compensate the allocative inefficiencies induced by unemployment benefits. A dynamic general equilibrium model of a unionised economy is developed in which participation to the formal labour market is endogenous and the budget of the State...

In this paper, the authors study the effect of subsidized on-the-job training, training for the unemployed, and pure wage subsidies on job tenure. Correcting for selection biases, they find that each of the labor-market policies increases the length of job tenure. Despite the sensitivity of the...