Labour market, obesity and public policy considerations
This paper attempts to investigate the relation among wages, unemployment, obesity and to identify public policies to address the problem of over-weightness. To this purpose, a simple search and matching model of labour market is developed. Our framework tries to capture the relationship between obesity and employment/unemployment by assuming that the fraction of obese workers is a function of the ratio of vacant jobs to unemployment (labour market tightness). We argue that if obesity is positively related with employment, then socially optimality dictates the imposition of a lump-sum tax on all individuals. In the opposite case a subsidy should be given.
Volume (Year): 33 (2013)
Issue (Month): 1 ()
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