The hiring subsidy cum firing tax in a search model of unemployment

B.J. Heijdra, J.E. Ligthart

OnderzoeksoutputAcademicpeer review

4 Citaten (Scopus)


We study the macroeconomic and welfare effects of a tax-subsidy scheme on labour in a model with search unemployment. In a second-best world welfare increases if unemployment is inefficiently high or if there are pre-existing fiscal distortions. (C) 2002 Elsevier Science B.V. All rights reserved.

Originele taal-2English
ArtikelnummerPII S0165-1765(01)00577-8
Pagina's (van-tot)97-108
Aantal pagina's12
TijdschriftEconomics Letters
Nummer van het tijdschrift1
StatusPublished - mrt.-2002

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