Browsing Department of Economics (ECON) by Author "Kennes, John"
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Filges, Trine; Kennes, John; Larsen, Birthe; Tranæs, Torben (København, 2005)[More information][Less information]
Abstract: This paper studies labour market policy in a society where differently gifted individuals can invest in training to further increase their labour market productivity and where the government seeks both effiency and equity. Frictions in the matching process create unemployment and differently skilled workers face different unemployment risks. We show that in such an environment, training programmes that are targeted to the unemployed complement passive transfers (UI benefits), unlike a general training subsidy. Combining passive subsidies with a training subsidy conditioned on the individual being unemployed (for a while) - the typical Active Labour Market Programme - implies a favorable trade-off between equity and efficiency which encourages high spending on training. URI: http://hdl.handle.net/10398/7511 Files in this item: 1
wp 2005.11equity.pdf (230.2Kb) -
Kennes, John; Tranæs, Torben; Larsen, Birthe; Filges, Trine (København, 2006)[More information][Less information]
Abstract: We find that the main featues of labor policy across OECD countries can be explained by a simple general equilibrium search model with risk neutral agents and a government that chooses policy to maximize a social welfare function. In equilibrum, policies are chosen to optimal redistribute income from advantaged to disadvantaged workers. A worker can be disadvantaged in the sense that they may have less ability to aquire and utilize skills in the workplace. The model explains why passive benefits tend to fall and active benefits tend to increase during the course of unemployment spell. The model also explains why countries that appear to pursue equity spend more on both active and passive labor market programs. URI: http://hdl.handle.net/10398/7648 Files in this item: 1
wp13-06.pdf (197.7Kb)
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