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Redistribution and Employment Policies with Endogenous Unemployment

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Author Info
Robin Boadway () (Queen's University and CREFE)
Katherine Cuff () (McMaster University)
Nicolas Marceau () (Center for Research on Economic Fluctuations and Employment, UQAM)

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Abstract

We study the features of optimal transfers to the non-employed which include those unable to work, the voluntarily unemployed, and the involuntarily unemployed. Both voluntary and involuntary unemployment are endogenous. We analyze optimal government policies in the presence of two types of involuntary unemployment, frictional and that induced by efficiency wages. We consider how the quality of the government's information affects policies and also study time-consistent policies. The models are simple, yet rich enough to reflect real-world policies, including transfers to the disabled, welfare for non-working employables, unemployment insurance, employment subsidies, and taxes on workers and firms.

Nous étudions les transferts aux sans-emploi, lesquels peuvent être incapables de travailler, chômeurs volontaires ou chômeurs involontaires. Le nombre de chômeurs volontaires et involontaires est endogène. Nous caractérisons les politiques gouvernementales optimales pour le cas où le chômage involontaire est frictionnel et pour celui où il est causé par des salaires efficaces. Nous étudions la cohérence temporelle des politiques et l'impact qu'a sur elles la qualité de l'information à la disposition du gouvernement. Comportant des transferts aux non-employables, de l'aide sociale aux sans-emplois capables de travailler, de l'assurance-chômage, des subventions à l'emploi et des taxes payées par les firmes et les travailleurs, les modèles étudiés sont simples mais demeurent néanmoins de bonnes représentations de la réalité.

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Publisher Info
Paper provided by CREFE, Université du Québec à Montréal in its series Cahiers de recherche CREFE / CREFE Working Papers with number 121.

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Length: 33 pages
Date of creation: Oct 2000
Date of revision:
Handle: RePEc:cre:crefwp:121

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Related research
Keywords: Redistribution; Employment Policies; Unemployment;

Other versions of this item:

Find related papers by JEL classification:
H2 - Public Economics - - Taxation, Subsidies, and Revenue
J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June. [Downloadable!] (restricted)
  2. Mirrlees, James A, 1971. "An Exploration in the Theory of Optimum Income Taxation," Review of Economic Studies, Blackwell Publishing, vol. 38(114), pages 175-208, April. [Downloadable!] (restricted)
  3. Sorensen, Peter Birch, 1999. "Optimal tax progressivity in imperfect labour markets," Labour Economics, Elsevier, vol. 6(3), pages 435-452, September. [Downloadable!] (restricted)
  4. Robin Boadway & Katherine Cuff & Nicolas Marceau, 1999. "Inter-Jurisdictional Competition for Firms: Jobs as Vehicles for Redistribution," Working Papers 986, Queen's University, Department of Economics. [Downloadable!]
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  5. Robin Boadway & Katherine Cuff, 1999. "Monitoring Job Search as an Instrument For Targeting Transfers," International Tax and Public Finance, Springer, vol. 6(3), pages 317-337, August. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Robin Boadway & Katherine Cuff & Nicolas Marceau, 2003. "Agglomeration Effects and the Competition for Firms," Cahiers de recherche 0324, CIRPEE. [Downloadable!]
    Other versions:
  2. Tetsuya Nakajima, 2005. "A Simple Model of Keynesian Unemployment," Macroeconomics 0502024, EconWPA. [Downloadable!]
  3. Protopopescu Dan, 2008. "Improving the Effort Concept: A Revision of the Traditional Approach in the Context of Controlled Dynamic Stochastic Environments," UFAE and IAE Working Papers 739.08, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC), revised 08 Jan 2009. [Downloadable!]
  4. Lehmann, Etienne & Parmentier, Alexis & Van der Linden, Bruno, 2008. "Optimal Income Taxation with Endogenous Participation and Search Unemployment," IZA Discussion Papers 3804, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. Robin Boadway & Katherine Cuff & Nicolas Marceau, 2002. "Advance Production Duopolies and Posted Prices or Market-Clearing Prices," Department of Economics Working Papers 2002-08, McMaster University. [Downloadable!]
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