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Career Paths, Unemployment, and the Efficiency of the Labor Market: Should Youth Employment Be Subsidized?

Identifieur interne : 000D97 ( Istex/Curation ); précédent : 000D96; suivant : 000D98

Career Paths, Unemployment, and the Efficiency of the Labor Market: Should Youth Employment Be Subsidized?

Auteurs : Frédéric Gavrel ; Isabelle Lebon ; Therese Rebière

Source :

RBID : ISTEX:A3816CC98C023119D52C87A31503C3428F884C4E

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.

Url:
DOI: 10.1111/j.1467-9779.2010.01463.x

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ISTEX:A3816CC98C023119D52C87A31503C3428F884C4E

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Frédéric Gavrel
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Isabelle Lebon
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<mods:affiliation>CREM‐CNRS, University of Caen</mods:affiliation>
<wicri:noCountry code="subField">Caen</wicri:noCountry>
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Therese Rebière
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<mods:affiliation>CERENE, University of Le Havre</mods:affiliation>
<wicri:noCountry code="subField">Havre</wicri:noCountry>
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