TY  - BOOK
AU  - Belan,Pascal
AU  -  Carré,Martine
AU  -  Gregoir,Stéphane
TI  - Subsidizing Low-Skilled Jobs in a Dual Labor Market
PY  - 2007///.
							
N1  - 90
N2  - A large exclusion from the labor market or an important unemployment of lowskilled workers is observed in numerous countries that set a minimum wage. Unemployment benefit or subsidizing low-skilled job policies can be mixed to deal with this situation. We introduce a matching model where (i) co-exist classical and frictional unemployments, (ii) the labor market is dual. Low-skilled jobs pay the minimum wage, while high-skilled wages result from bargaining. High-skilled unemployed can apply for both types of jobs, while opportunities for low-skilled ones are limited to low-skilled jobs. In this set-up, increasing low-skilled job subsidies with a balanced budget does not necessarily reduce low-skilled unemployment or unemployment spells. The model is calibrated for the French labor market. Classifications JEL: H21, H23, J41
UR  - https://shs.cairn.info/journal-revue-economique-2007-3-page-693?lang=en&redirect-ssocas=7080
ER  -