Deposit-Refundon Labor : A Solution to Equilibrium Unemployment? /

The paper studies the employment effects of a deposit-refund scheme on labor in a simple search-theoretic model of the labor market. It is shown that if a firm pays a deposit to the government when it fires a worker, to be refunded when it employs the same or another worker, the vacancy rate increas...

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Bibliografiske detaljer
Hovedforfatter: Heijdra, Ben
Andre forfattere: Ligthart, Jenny
Format: Tidsskrift
Sprog:English
Udgivet: Washington, D.C. : International Monetary Fund, 2000.
Serier:IMF Working Papers; Working Paper ; No. 2000/009
Online adgang:Full text available on IMF
Beskrivelse
Summary:The paper studies the employment effects of a deposit-refund scheme on labor in a simple search-theoretic model of the labor market. It is shown that if a firm pays a deposit to the government when it fires a worker, to be refunded when it employs the same or another worker, the vacancy rate increases and the unemployment rate declines. However, the scheme introduces rigidities in the labor market that may be undesirable in countries wanting to liberalize their labor markets.
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Fysisk beskrivelse:1 online resource (19 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Adgang:Electronic access restricted to authorized BRAC University faculty, staff and students