Public Policy, Employment and Welfare in an Efficiency Wage Model
نویسندگان
چکیده
This paper develops an efficiency wage model to highlight public policy for relieving unemployment in general equilibrium. This equilibrium entails unemployment because of either friction in the labor market or efficiency wages. For the purposes of relief, we present unemployment benefits and public employment programs, and we estimate labor demand and supply. Wage subsidies are also considered. The results show that unemployment benefits have a negative effect on the employment rate, while public employment and wage subsidies have a positive effect. The impact of these policies on social welfare is also considered. Keywards: Employment Rate, Efficiency Wage, Public Policy JEL Classification: E6, H2, H3, J6 ∗Coresponding Auther, Address: Graduate School of Economics, Kobe University, Rokko-dai 2-1, Kobe 657-8501, Japan; Tel: 81-78-803-6839, Fax: 81-78-803-6839, E-mail: [email protected] †Address: Graduate School of Economics, Kobe University, Rokko-dai 2-1, Kobe 657-8501, Japan; Tel: 81-78-803-6874, Fax: 81-78-803-6874, E-mail: [email protected]
منابع مشابه
Proposing the Model of Sponsored Employment of Persons with Disabilities in Public Organizations of Iran
Abstract Introduction: Considering the importance of employment in forming the economic and psychological context of people with disabilities and the need for government support in planning and development of the disability, this study aimed to design a public-supported employment model for the development of disability in Iran. A review of studies shows that such a model has not been studied ...
متن کاملProposing the Model of Sponsored Employment of Persons with Disabilities in Public Organizations of Iran
Abstract Introduction: Considering the importance of employment in forming the economic and psychological context of people with disabilities and the need for government support in planning and development of the disability, this study aimed to design a public-supported employment model for the development of disability in Iran. A review of studies shows that such a model has not been studied ...
متن کاملStagnation and minimum wage: Optimal minimum wage policy in macroeconomics
This paper argues how an increase in minimum wage affects employment, consumption, and social welfare with dynamic general equilibrium model without market frictions. The study demonstrates that a minimum wage hike reduces an actual unemployment rate and has positive effects on an employment rate under the demand-shortage economy whereas they do not under a non-demand shortage economy. The stud...
متن کاملWorkers , Capitalists , Wages , and Employment ∗
Standard new Keynesian models assume the functional distribution of income is irrelevant. This stands in contrast to much of the public debate which presumes that a shift in the distribution of income towards workers will boost aggregate demand and employment. Under this latter view, falling wages during a recession can worsen unemployment. In contrast, neoclassical economics often views unempl...
متن کاملWorkfare, Monitoring, and Efficiency Wages
The impact of a stronger work requirement for welfare recipients in a workfare program is studied in an efficiency wage model where a representative firm chooses its level of monitoring activities. A stricter workfare policy raises employment and monitoring activities. It typically increases profits and reduces the tax rate. The impact on the net wage is ambiguous. Utility levels of employed wo...
متن کامل