Segmented labour markets without policy-induced labour market distortions

Tax reforms under market distortions in product and labour markets

Using a two-agent model comprised of capitalists and workers, this paper examines the importance of imperfect competition in product and labour markets in determining the welfare effects of tax reform. The reform considered consists of eliminating the capital tax alongside a concurrent rise in the labour tax. In contrast to the perfectly competitive model, models with product or labour market f...

The Danish flexicurity labour market policy concept

The views expressed in this working paper are those of the author(s) and not necessarily represent those of the Faculty of Economics and Business – Zagreb. The paper has not undergone formal review or approval. The paper is published to bring forth comments on research in progress before it appears in final form in an academic journal or elsewhere. Abstract Objective of this paper is to analyse...

Active Labour Market Policy and Macroeconomic Stabilisation

This paper considers the feasibility of a flexible system of active labour market policy which would adjust to the changing phases of the business cycle, and would dispense with the necessity to reinvent systems from scratch in every phase of every cycle. The proposed system would have an expenditure allocation which varied with the levels of short-term and long-term unemployment, and would all...

The Current Situation on the Labour Market and Labour Market Policy in Hungary

Labour Market Programmes and Labour Market Outcomes: A study of the Swedish Active Labour Market Interventions

This paper assesses the impact of Swedish welfare-to-work programmes on labour market performance including wages, labour market status, unemployment duration and future welfare-to-work participation. We develop a structural dynamic model of labour supply which incorporates detailed institutional features of these policies and allows for selection on observables and unobservables. We estimate t...