Career Paths, Unemployment, and the Efficiency of the Labor Market: Should Youth Employment Be Subsidized?
Identifieur interne : 000D97 ( Istex/Curation ); précédent : 000D96; suivant : 000D98Career Paths, Unemployment, and the Efficiency of the Labor Market: Should Youth Employment Be Subsidized?
Auteurs : Frédéric Gavrel ; Isabelle Lebon ; Therese RebièreSource :
- Journal of Public Economic Theory [ 1097-3923 ] ; 2010-06.
Abstract
This paper studies the implications of learning‐by‐doing on youth unemployment and market efficiency when workers benefiting from this kind of training experience search (while on the job) for a higher skill job. Firms with low‐skill jobs suffer from a poaching behavior by firms with high‐skill jobs, causing a shortage of low‐skill jobs and excessive youth unemployment. An optimal policy, consisting of taxing the output of high‐skill jobs and subsidizing the output of low‐skill jobs, restores market efficiency and reduces youth unemployment.
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DOI: 10.1111/j.1467-9779.2010.01463.x
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<affiliation><mods:affiliation>CERENE, University of Le Havre</mods:affiliation>
<wicri:noCountry code="subField">Havre</wicri:noCountry>
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<front><div type="abstract" xml:lang="en">This paper studies the implications of learning‐by‐doing on youth unemployment and market efficiency when workers benefiting from this kind of training experience search (while on the job) for a higher skill job. Firms with low‐skill jobs suffer from a poaching behavior by firms with high‐skill jobs, causing a shortage of low‐skill jobs and excessive youth unemployment. An optimal policy, consisting of taxing the output of high‐skill jobs and subsidizing the output of low‐skill jobs, restores market efficiency and reduces youth unemployment.</div>
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