Advanced Search
MyIDEAS: Login to save this paper or follow this series

A hiring subsidy for long-term unemployed in a search model with PES and random search

Contents:

Author Info

  • Jahn, Elke J.
  • Wagner, Thomas

Abstract

Our search model combines two search methods, the public employment service (PES) and random search. The separation rate is endogenous, the job matching process consists of three rounds. In the first and the second respectively the short-term (STU) and the long-term unemployed (LTU) randomly search for a vacancy. During the last round the PES matches registered jobseekers with registered vacancies. The LTU cause training costs and, during the training period, have a lower marginal product than the STU. The effects of the hiring subsidy and of profiling techniques to increase the effectiveness of the PES depend on the target group they are geared towards. For skill groups, who have relatively low private search costs in comparison with their productivity, not only the hiring subsidy but also the job placement activities of the PES are counterproductive and reduce overall employment. -- Das Modell kombiniert zwei Suchmethoden, den staatlichen Vermittlungsdienst (PES) und die private Jobsuche. Die Trennungsrate des Modells ist endogen, der Matching Prozeß umfasst drei Phasen. In der ersten und zweiten suchen jeweils die Kurzzeitarbeitslosen (STU) und die Langzeitarbeitslosen (LTU) nach annoncierten Stellen, in der dritten vermittelt der PES registrierte Jobsucher mit registrierten Vakanzen. LTU verursachen Trainingskosten und haben während der Einarbeitungszeit eine geringere Produktivität als STU. Die Wirkungen des Lohnkostenzuschusses für LTU und der Maßnahmen zur Erhöhung der Vermittlungseffektivität des PES hängen von der Zielgruppe ab. Für Zielgruppen, deren private Suchkosten im Vergleich zu ihrer Arbeitsproduktivität relativ gering sind, erweisen sich nicht nur der Lohnkostenzuschuss sondern auch die staatliche Vermittlungsaktivität als kontraproduktive Instrumente, die die gesamtwirtschaftliche Beschäftigung reduzieren.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://econstor.eu/bitstream/10419/28294/1/349849633.PDF
Download Restriction: no

Bibliographic Info

Paper provided by Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics in its series Discussion Papers with number 11.

as in new window
Length:
Date of creation: 2002
Date of revision:
Handle: RePEc:zbw:faulre:11

Contact details of provider:
Web page: http://www.arbeitsmarkt.wiso.uni-erlangen.de/english-version/
More information through EDIRC

Related research

Keywords: Matching model; hiring subsidy; endogenous separation rate; active labour market policy; PES; search market;

Other versions of this item:

Find related papers by JEL classification:

References

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.:
as in new window
  1. Barbara Petrongolo & Christopher A. Pissarides, 2000. "Looking Into the Black Box: A Survey of the Matching Function," CEP Discussion Papers dp0470, Centre for Economic Performance, LSE.
  2. Arulampalam, Wiji, 2001. "Is Unemployment Really Scarring? Effects of Unemployment Experiences on Wages," Economic Journal, Royal Economic Society, vol. 111(475), pages F585-606, November.
  3. Mortensen, Dale T & Pissarides, Christopher A, 1994. "Job Creation and Job Destruction in the Theory of Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 397-415, July.
  4. Pissarides, C A, 1979. "Job Matchings with State Employment Agencies and Random Search," Economic Journal, Royal Economic Society, vol. 89(356), pages 818-33, December.
  5. Mortensen, Dale T. & Pissarides, Christopher A., 1999. "New developments in models of search in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 39, pages 2567-2627 Elsevier.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:zbw:faulre:11. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.