The Employment and Hours Effects of a Marginal Employment Subsidy
AbstractThis paper extends a standard labor demand model in order to study the microeconomic effects of marginal employment subsidies. The analysis emphasizes the distinction between workers and hours per worker, and investigates subsidies with respect to both quasi-fixed and variable labor costs. The policy of granting marginal employment subsidies conditional on mandatory workweek reductions, as recently practiced in several European countries, is also investigated. Additionally, the study incorporates a comparative evaluation of general and marginal employment subsidies. Copyright 1989 by Scottish Economic Society.
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Bibliographic InfoArticle provided by Scottish Economic Society in its journal Scottish Journal of Political Economy.
Volume (Year): 36 (1989)
Issue (Month): 4 (November)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0036-9292
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- Chang, Juin-jen & Huang, Chun-chieh & Lai, Ching-chong, 2007. "Working hours reduction and wage contracting style in a dynamic model with labor adjustment costs," Journal of Economic Dynamics and Control, Elsevier, vol. 31(3), pages 971-993, March.
- Andreas Knabe & Ronnie Schöb, 2007.
"Subsidizing Extra Jobs: Promoting Employment by Taming the Unions,"
FEMM Working Papers
07020, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
- Andreas Knabe & Ronnie Schöb, 2007. "Subsidizing Extra Jobs: Promoting Employment by Taming the Unions," CESifo Working Paper Series 2130, CESifo Group Munich.
- Chun-chieh Huang & Ching-chong Lai & Juin-jen Chang, 2004. "Working Hours Reduction and Endogenous Growth," IEAS Working Paper : academic research 04-A006, Institute of Economics, Academia Sinica, Taipei, Taiwan.
- Andreas Knabe & Ronnie Schöb & Joachim Weimann, 2006. "Marginal Employment Subsidization: A New Concept and a Reappraisal," CESifo Working Paper Series 1707, CESifo Group Munich.
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