Flexicurity and Job Reallocation
Type
discussion paper
Date Issued
2010-04-09
Author(s)
Abstract (De)
This paper develops a general equilibrium model with safe and risky jobs where unemployment is concentrated in a highly productive but volatile sector. Frictional unemployment arises in the process of job creation, firing and retraining for alternative employment. The paper derives an optimal welfare policy which combines the design of the tax schedule with three pillars of the `flexicurity' model. The optimal policy is characterized by (i) a progressive wage tax schedule; (ii) a wage subsidy to re-employed workers; (iii) unemployment insurance benefits; (iv) job protection to contain firing; and (v) active labor market policy to facilitate labor reallocation.
Language
German
HSG Classification
contribution to scientific community
Refereed
No
Start page
1
End page
42
Pages
42
Subject(s)
Eprints ID
61669
File(s)![Thumbnail Image]()
open.access
Name
Flexicurity8Apr2010.pdf
Size
396.4 KB
Format
Adobe PDF
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