IDEAS home Printed from https://ideas.repec.org/a/ecj/econjl/v105y1995i430p601-19.html
   My bibliography  Save this article

Macroeconomic Effects of Active Labour Market Programmes in a Union Wage-Setting Model

Author

Listed:
  • Calmfors, Lars
  • Lang, Harald

Abstract

The recent Western European policy debate on unemployment has emphasized the benefits of active labor market programs. The authors analyze the effects on wage pressure and equilibrium employment in a union wage-setting framework. Programs are wage-reducing to the extent that they help maintain effective labor-force participation but they may also weaken insider incentives for wage restraint as the disutility of layoffs becomes smaller. Targeting the long-term unemployed is crucial for the success of active labor market policy since the welfare effects on the laid-off then are more heavily discounted and employment opportunities are redistributed from insiders to outsiders. Copyright 1995 by Royal Economic Society.

Suggested Citation

  • Calmfors, Lars & Lang, Harald, 1995. "Macroeconomic Effects of Active Labour Market Programmes in a Union Wage-Setting Model," Economic Journal, Royal Economic Society, vol. 105(430), pages 601-619, May.
    • Handle: RePEc:ecj:econjl:v:105:y:1995:i:430:p:601-19
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0013-0133%28199505%29105%3A430%3C601%3AMEOALM%3E2.0.CO%3B2-Q&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecj:econjl:v:105:y:1995:i:430:p:601-19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley-Blackwell Digital Licensing or Christopher F. Baum (email available below). General contact details of provider: https://edirc.repec.org/data/resssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.