Converting Unemployment Benefits into Employment Subsidies
AbstractThis paper explores the implications of giving unemployed people -- particularly the long-term unemployed -- the opportunity to use part of their unemployment benefits to provide employment vouchers to the firms that hire them. The vouchers would depend positively on unemployment duration and training. The paper argues that this policy would give unemployed people and their potential employers an expanded domain of choices in the labour market and thereby reduce the market failures generated and amplified by unemployment benefit systems. A simple theoretical model is presented, followed by preliminary empirical estimates which suggest that the proposed policy may have significant potential in a number of OECD countries.
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Bibliographic InfoArticle provided by American Economic Association in its journal American Economic Review.
Volume (Year): 84 (1994)
Issue (Month): 2 (May)
Other versions of this item:
- Snower, Dennis J., 1994. "Converting Unemployment Benefits into Employment Subsidies," CEPR Discussion Papers 930, C.E.P.R. Discussion Papers.
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Private Pensions
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
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