TY  - RPRT
        AU  - Cardullo, Gabriele
AU  - Linden, Bruno Van der
        TI  - Employment Subsidies and Substitutable Skills: An Equilibrium Matching Approach
        PY  - 2006/Apr/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 2073
        UR  - https://www.iza.org/index.php/publications/dp2073
        AB  - The search-matching model is well suited for an equilibrium evaluation of labor market policies. When those policies are targeted on some groups, the usual juxtaposition of labor markets is however a shortcoming. There is a need for a setting where workers’ productivity depends on employment levels in all markets. This paper provides such a theoretical setting. We first develop a streamlined model and then show that it can be extended to deal with interactions among various labor market and fiscal policies. Simulation results focus on the effects of employment subsidies and in-work benefits and on their interactions with the profile of unemployment benefits and with active labor market programs.
        KW  - labor market programs
KW  - reductions of social security contributions
KW  - unemployment insurance
KW  - unemployment
KW  - wage bargaining
KW  - search-matching equilibrium
        ER  -