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

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Author Info

  • 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.

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File URL: http://openarchive.cbs.dk/cbsweb/handle/10398/7515
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Bibliographic Info

Paper provided by Copenhagen Business School, Department of Economics in its series Working Papers with number 14-2000.

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Length: 29 pages
Date of creation: 01 Sep 2000
Date of revision:
Handle: RePEc:hhs:cbsnow:2000_014

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Postal: Department of Economics, Copenhagen Business School, Solbjerg Plads 3 C, 5. sal, DK-2000 Frederiksberg, Denmark
Phone: 38 15 25 75
Fax: 38 15 34 99
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Web page: http://www.cbs.dk/departments/econ/
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Keywords: Endogenous Search; Active Labour Market Policy; Unemployment;

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