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Faut-il inciter l'offre ou la demande de travail peu qualifié ?

Author

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  • Pierre Cahuc
  • Étienne Lehmann

Abstract

We use dynamical job search matching framework to compare the effects of two policies targeted on low skilled jobs paid at a the minimum wage : reductions of employers’ contributions to social security versus reductions of taxes paid by employees such as the « Prime pour l’Emploi ». Our approach integrates simultaneously job search behaviour and frictional unemployment, contrary to previous literature. This type of model allows us to deal with effects of policies on unemployment rate, employment rate and welfare. Our results suggest that reducing employers contributions has larger effects on unemployment rate and unemployment spell, whereas redducing taxes paid by employees has larger effects on participation rates and welfare. Classification JEL : J64, J65

Suggested Citation

  • Pierre Cahuc & Étienne Lehmann, 2002. "Faut-il inciter l'offre ou la demande de travail peu qualifié ?," Revue économique, Presses de Sciences-Po, vol. 53(6), pages 1305-1327.
  • Handle: RePEc:cai:recosp:reco_536_1305
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    Cited by:

    1. Etienne Lehmann, 2003. "Évaluation de la mise en place d’un système d’allocation universelle en présence de qualifications hétérogènes : le rôle institutionnel du salaire minimum," Économie et Prévision, Programme National Persée, vol. 157(1), pages 31-50.

    More about this item

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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