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In-Work Benefits in Search Equilibrium Author info | Abstract | Publisher info | Download info | Related research | Statistics Kolm, Ann-Sofie () (Dept. of Economics, Stockholm University)
Tonin, Mirco () (Institute for International Economic Studies)
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We study the general equilibrium effects of in-work beneifts in a search framework. Introducing in-work benefits reduces equilibrium unemployment, moderate wages, and boost participation and search. Total employment increases as a result. Considering in-work benefits in a general equilibrium setting reveals that employment increases mainly though the impact on job creation. This is in contrast to what is usually stressed, namely that employment increases because individuals are provided with incentives to take a job.
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Paper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number
2006:12.
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Length: 40 pages
Date of creation: 21 Dec 2006Date of revision:
Handle: RePEc:hhs:sunrpe:2006_0012Contact details of provider: Postal: Department of Economics, Stockholm, S-106 91 Stockholm, Sweden Phone: +46 8 16 20 00 Fax: +46 8 16 14 25 Email: Web page: http://www.ne.su.se/ More information through EDIRC
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Keywords: In-work benefits ; unemployment ; participation ; Find related papers by JEL classification: J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
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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.: Immervoll H & Kleven H & Kreiner C & Saez E, 2004.
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"When financial work incentives pay for themselves: evidence from a randomized social experiment for welfare recipients ,"
Journal of Public Economics ,
Elsevier, vol. 89(1), pages 5-29, January.
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Hanming Fang & Michael P. Keane, 2004.
"Assessing the Impact of Welfare Reform on Single Mothers ,"
Brookings Papers on Economic Activity ,
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