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Working Paper 12-07 - Wage and age related employers’ SSC cuts and wage subsidies in the 2007 vintage of HERMES

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  • Peter Stockman
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    Abstract

    The distinction between the young and the elderly within low and high wage earning employment in HERMES, the FPB's medium-term macroeconomic model, enables the assessment of both age and wage related labour cost reducing policies. The age structure of salaried employment in each branch of activity is embedded in a three-stage mechanism. First, aggregate demand and the relative cost of labour to capital determine salaried employment. Next, relative wages allocate employment among three major labour categories: low-paid jobs, high-paid jobs and special-employment programmes. Finally, within each labour category relative wages allocate employment between the young (aged less than fifty) and the elderly (aged fifty or more).

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    File URL: http://www.plan.be/admin/uploaded/200710110931340.wp0712.pdf
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    Bibliographic Info

    Paper provided by Federal Planning Bureau, Belgium in its series Working Papers with number 0712.

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    Date of creation: 27 Sep 2007
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    Handle: RePEc:fpb:wpaper:0712

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