This paper studies labour market policy in a society where differently gifted individuals can invest in training to further increase their labour market productivity. Furthermore, the government seeks both efficiency and equity. Frictions in the matching process create unemployment and...

This paper studies labour market policy in a society where differently gifted individuals can invest in training to further increase their labour market productivity and where the government seeks both effiency and equity. Frictions in the matching process create unemployment and differently...

We find that the main featues of labor policy across OECD countries can be explained by a simple general equilibrium search model with risk neutral agents and a government that chooses policy to maximize a social welfare function. In equilibrum, policies are chosen to optimal redistribute income...

This paper challenges the traditional view that unemployment is high because insiders determine the union wage. The insiders in this paper are characterized by being more efficient when they search for a job than the outsiders, implying that they experience relatively less unemployment. We...

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...

This paper examines the impact on unemployment, unemployment distribution, wages and welfare of Youth Unemployment Programmes (YUPs). The aim of YUP is to increase the number of young people acquiring skills. We assume that the YUPs are a complete success and consequently analyse what happens...

This paper examins the macroeconomic effects of youth unemployement programmes in the form of vocational training (YUPs), developing a two sector general equilibrium model featuring matching frictions and worker-firm wage bargaining for skilled workers. Unskilled sector wages are indexed to...

We test a number of hypotheses derived from search theory about spatial job and residential moving behaviour of two-earner households using data for Denmark. In line with theory, we demonstrate that residential mobility depends positively on the commuting distance of both spouses, but negatively...

The paper studies the impact from variations in unemployment on retirement among older workers. We integrate unemployment variations with early retirement programs and other pathways out of the labor force. The paper describes retirement programs, policy changes, labor force participation among...

We develop a two-sided multidimensional matching model of the market for CEOs that allows for both pecuniary and non-pecuniary (amenity) compensation. The model is estimated by maximum likelihood estimation using matched CEO-firm data from Denmark. We show that CEOs have preferences for building...