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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Бібліографічні деталі
Автор: Heijdra, Ben
Інші автори: Ligthart, Jenny
Формат: Журнал
Мова:English
Опубліковано: Washington, D.C. : International Monetary Fund, 2000.
Серія:IMF Working Papers; Working Paper ; No. 2000/009
Онлайн доступ:Full text available on IMF
Опис
Резюме: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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Фізичний опис:1 online resource (19 pages)
Формат:Mode of access: Internet
ISSN:1018-5941
Доступ:Electronic access restricted to authorized BRAC University faculty, staff and students