TY  - RPRT
        AU  - Tonin, Mirco
AU  - Kolm, Ann-Sofie
        TI  - In-Work Benefits and Unemployment
        PY  - 2011/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 5473
        UR  - https://www.iza.org/publications/dp5473
        AB  - In-work benefits are becoming an increasingly relevant labour market policy, gradually expanding in scope and geographical coverage. This paper investigates the equilibrium impact of in-work benefits and contrasts it with the traditional partial equilibrium analysis. We find under which conditions accounting for equilibrium wage adjustments amplifies the impact of in-work benefits on search intensity, participation, employment, and unemployment, compared to a framework in which wages are fixed. We also account for the financing of these benefits and determine the level of benefits necessary to achieve efficiency in a labour market characterized by search externalities.
        KW  - search
KW  - in-work benefits
KW  - labour force participation
KW  - wage adjustment
        ER  -