The effectiveness of employment vouchers : a simple approach Die Effizienz von Beschäftigungsgutscheinen : ein einfacher Ansatz

Bibliographic Details
Authors and Corporations: Orszag, J. Michael, Snower, Dennis J.
Title: The effectiveness of employment vouchers : a simple approach Die Effizienz von Beschäftigungsgutscheinen : ein einfacher Ansatz
In: German economic review, Vol. 1, 2000, No. 4
Summary:Die Autoren präsentieren ein Modell, das die optimale Ausgestaltung einer Lohnsubvention für die Einstellung von Arbeitslosen in Form eines "Beschäftigungsgutscheins" ermittelt. (IAB) "This paper explores the optimal design of subsidies for hiring unemployed workers ('employment vouchers' for short) in the context of a simple dynamic model of the labour market. Focusing on the short-term and long-term effects of the vouchers on employment and unemployment, the analysis shows how the optimal policy depends on the rates of hiring and firin, and on the problems of displacement and deadweight. It also examines the roles of the government budget constraint and of the level of unemployment benefits in optimal policy design. We calibrate the model und evaluate the effectiveness of employment vouchers in reducting unemployment for a wide range of feasible parameters." (author's abstract)
Type of Resource:E-Article
Source:Genios (Sozialwissenschaften)