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Labor Market Policies and Equilibrium Employment : Theory and Application for Belgium

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  • Van der Linden, Bruno

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) ; Belgian National Fund for Scientific Research (FNRS))

  • Dor, Eric

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES); Université catholique de Lille, Faculté Libre des Sciences Economiques, Institut d’Economie Scientifique et de Gestion IESEG, Labores-CNRS)

Abstract

This paper is concerned with the general equilibrium effects of active labor market programs and the unemployment insurance system (the replacement ratio and the level of sanctions). It develops an equilibrium job matching model where active programs and the rate of sanctions have an amiguous impact on the equilibrium employment rate. The model is simulated for Belgium. The simulations suggest that passive and active labor market policies do not have a substantial net impact on the employment rate.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2001005.

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Length: 21
Date of creation: 01 Feb 2001
Date of revision:
Handle: RePEc:ctl:louvir:2001005

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Keywords: labor market policies; sanctions; equilibrium search model; matching function;

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  27. Van der Linden, Bruno & Dor, Eric, 1998. "The net effect of unemployment benefits, sanctions and training on aggregate unemployment outflows," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 2000020, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES), revised 07 Sep 2000.
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Citations

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Cited by:
  1. Van der Linden, Bruno & Dor, Eric, 1998. "The net effect of unemployment benefits, sanctions and training on aggregate unemployment outflows," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales), Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) 2000020, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES), revised 07 Sep 2000.
  2. Batyra, Anna & Sneessens, Henri R., 2010. "Selective Reductions in Labor Taxation: Labor Market Adjustments and Macroeconomic Performance," IZA Discussion Papers 5013, Institute for the Study of Labor (IZA).
  3. Bruno Van Der Linden, 2003. "Unemployment Insurance and Training in an Equilibrium Matching Model with Heterogeneous Agents," Working Papers, Centre de Recherche en Economie et Statistique 2003-01, Centre de Recherche en Economie et Statistique.
  4. Eva MORENO-GALBIS & Henri SNEESSENS, 2007. "Low-skilled unemployment, capital-skill complementarity and embodied technical progress," Discussion Papers (REL - Recherches Economiques de Louvain) 2007031, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  5. Bruno Van der Linden & Eric Dor, 2003. "The net effect of unemployment benefits, sanctions and training on regular employment," Working Papers 2003-ECO-01, IESEG School of Management.
  6. Moreno-Galbis, E., 2006. "Unemployment and endogenous growth with new technologies-skill complementarity," Economic Modelling, Elsevier, Elsevier, vol. 23(2), pages 364-386, March.
  7. Pierrard, Olivier & Sneessens, Henri R., 2003. "Low-Skilled Unemployment, Biased Technological Shocks and Job Competition," IZA Discussion Papers 784, Institute for the Study of Labor (IZA).
  8. O Debande & Vincent Vandenberghe, 2007. "Refinancing Europe’s Higher Education through Deferred and Income-Contingent Fees: An empirical assessment using Belgian, German and UK data," CASE Papers, Centre for Analysis of Social Exclusion, LSE /124, Centre for Analysis of Social Exclusion, LSE.

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