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Optimal Employment Subsidies and Market Structures in Industries with Unemployment

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  • Picard, Pierre M

Abstract

In this paper we analyze the issue of optimal employment subsidies in imperfectly competitive industries in which a distortion in the labour market generates involuntary unemployment. As a benchmark case, we focus on monopolies and duopolies and on complete information between firms and government. We characterize the levels and creations of employment in the subsidized industry and we check when such employment policies are more favorable to the least productive firms. Copyright 2001 by Oxford University Press.

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  • Picard, Pierre M, 2001. "Optimal Employment Subsidies and Market Structures in Industries with Unemployment," Oxford Economic Papers, Oxford University Press, vol. 53(2), pages 352-372, April.
    • Handle: RePEc:oup:oxecpp:v:53:y:2001:i:2:p:352-72
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    Cited by:

    1. Yoshihiro Tomaru & Masayuki Saito, 2010. "Mixed Duopoly, Privatization And Subsidization In An Endogenous Timing Framework," Manchester School, University of Manchester, vol. 78(1), pages 41-59, January.
    2. Yasuhiko Nakamura, 2013. "Wage Bargaining And Merger Incentives With Asymmetric Costs," Bulletin of Economic Research, Wiley Blackwell, vol. 65, pages 56-84, May.

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