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Subventions des emplois non qualifiés dans un marché du travail dual

Author

Listed:
  • Pascal Belan
  • Martine Carré
  • Stéphane Gregoir

Abstract

A large exclusion from the labor market or an important unemployment of lowskilled workers is observed in numerous countries that set a minimum wage. Unemployment benefit or subsidizing low-skilled job policies can be mixed to deal with this situation. We introduce a matching model where (i) co-exist classical and frictional unemployments, (ii) the labor market is dual. Low-skilled jobs pay the minimum wage, while high-skilled wages result from bargaining. High-skilled unemployed can apply for both types of jobs, while opportunities for low-skilled ones are limited to low-skilled jobs. In this set-up, increasing low-skilled job subsidies with a balanced budget does not necessarily reduce low-skilled unemployment or unemployment spells. The model is calibrated for the French labor market. Classifications JEL : H21, H23, J41

Suggested Citation

  • Pascal Belan & Martine Carré & Stéphane Gregoir, 2007. "Subventions des emplois non qualifiés dans un marché du travail dual," Revue économique, Presses de Sciences-Po, vol. 58(3), pages 693-702.
  • Handle: RePEc:cai:recosp:reco_583_0693
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    More about this item

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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