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Does Active Labour Market Policy Reduce Unemployment When Search Is Endogenous?

Author

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  • Filges, Trine

    (Department of Economics, Copenhagen Business School)

  • Larsen, Birthe

    (Department of Economics, Copenhagen Business School)

Abstract

We analyse the effects active labour market programmes (ALMPs) have on unemployment in a union wage-setting framework when search is endogenous. We assume that a union president, elected by majority voting determines the wage. We analyse the case where ALMPs increase match efficiency of the marginalized workers, and show that ALMPs may increase unemployment.

Suggested Citation

  • Filges, Trine & Larsen, Birthe, 2000. "Does Active Labour Market Policy Reduce Unemployment When Search Is Endogenous?," Working Papers 14-2000, Copenhagen Business School, Department of Economics.
  • Handle: RePEc:hhs:cbsnow:2000_014
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    Cited by:

    1. Trine Filges & Anders Bruun Jonassen & Anne‐Marie Klint Jørgensen, 2018. "Reducing unemployment benefit duration to increase job finding rates: a systematic review," Campbell Systematic Reviews, John Wiley & Sons, vol. 14(1), pages 1-194.

    More about this item

    Keywords

    Endogenous Search; Active Labour Market Policy; Unemployment;
    All these keywords.

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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