01568cas a2200253 a 4500 AALejournalIMF001118 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451842586 1018-5941 BD-DhAAL BD-DhAAL Heijdra, Ben. Deposit-Refundon Labor : A Solution to Equilibrium Unemployment? / Ben Heijdra, Jenny Ligthart. Washington, D.C. : International Monetary Fund, 2000. 1 online resource (19 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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. Mode of access: Internet Ligthart, Jenny. IMF Working Papers; Working Paper ; No. 2000/009 Full text available on IMF http://elibrary.imf.org/view/journals/001/2000/009/001.2000.issue-009-en.xml IMF e-Library