Advanced Search
MyIDEAS: Login to save this article or follow this journal

Active and Passive Policies Against Poverty with Decreasing Employability


Author Info

  • Matteo RICHIARDI

    (Universita' di Torino, LABORatorio R. Revelli)

  • Dalit CONTINI

    (Universita' di Torino)


In this paper we propose a dynamic partial equilibrium model in order to explain the search behaviour of low-skilled non employed workers, when their employability decreases as the unemployment spell lengthens. We show that the unemployed react to a reduction in their current search effectiveness by decreasing their search efforts, and react to an expected future reduction in search effectiveness by increasing their present search efforts, to exploit the most our of good times. We then separately analyze active and passive labor market policies, consisting in training programs and income support schemes. We show that it is optimal for the government to include among the eligibility criteria for subsidized training a minimum length of the unemployment spell. However, workers should be recruited before they become discouraged and stop searching. We also show that for broad range of the parameters the optimal income support scheme takes the form of unemployment benefits granted for a limited amount of time starting from the beginning of the unemployment spell, coupled with social assistance for long-term unemployed with very limited residual employability.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL:
Download Restriction: download restricted to subscribers, see for details

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by SIE - Societa' Italiana degli Economisti (I) in its journal Rivista Italiana degli Economisti.

Volume (Year): 13 (2008)
Issue (Month): 2 (August)
Pages: 245-272

as in new window
Handle: RePEc:rie:review:v:13:y:2008:i:2:n:3

Contact details of provider:
Postal: Piazzale Martelli, 8, 60121 Ancona (Italy)
Web page:
More information through EDIRC

Order Information:

Related research

Keywords: decreasing employability; human capital deterioration; income support; poverty; search; training; unemployment benefits;

Find related papers by JEL classification:


No references listed on IDEAS
You can help add them by filling out this form.


Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Contini, Dalit & Richiardi, Matteo G., 2012. "Reconsidering the effect of welfare stigma on unemployment," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 84(1), pages 229-244.


This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:rie:review:v:13:y:2008:i:2:n:3. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SIE).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.