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LABOR MARKET POLICIES IN A SECTOR SPECIFIC SEARCH MODEL WITH HETEROGENEOUS FIRMS AND WORKERS.
- Source :
-
Economic Analysis Review / Revista de Análisis Económico . dic2007, Vol. 22 Issue 2, p29-45. 17p. 4 Charts, 1 Graph. - Publication Year :
- 2007
-
Abstract
- This paper analyzes the effects of unemployment benefits and minimum wage policies in a noncompetitive labor market with two sectors, two types of workers and sector specific search. It finds that those policies can shift the job composition towards low-wage jobs and that they will never increase the number of high-wage jobs. Welfare can only increase because of reduced social vacancy creation costs. The paper is an extension of Acemoglu (2001) who finds in the homogeneous-worker random search version of the model that the mentioned labor market policies can shift the job composition toward high-wage jobs, increase the number of high-wage jobs and welfare. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 07165927
- Volume :
- 22
- Issue :
- 2
- Database :
- Academic Search Index
- Journal :
- Economic Analysis Review / Revista de Análisis Económico
- Publication Type :
- Academic Journal
- Accession number :
- 32059743