Working Paper Series, Department of Economics, Copenhagen Business School
Trine Filges and Birthe Larsen
DOES ACTIVE LABOUR MARKET POLICY REDUCE UNEMPLOYMENT WHEN SEARCH IS ENDOGENOUS?
Abstract: We analyse the effects active labour market programmes
(ALMPs) have on unemployment in a union wage-setting framework when search
is endogenous. We assume that a union president, elected by majority voting
determines the wage. We analyse the case where ALMPs increase match
efficiency of the marginalized workers, and show that ALMPs may increase
Keywords: Endogenous Search; Active Labour Market Policy; Unemployment; (follow links to similar papers)
JEL-Codes: J41; J64; J68; (follow links to similar papers)
29 pages, September 1, 2000
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