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Unemployment Subsidies as a Coordination Device When Different Jobsearch Methods Exist
[Le rôle des allocations chômage en présence de différentes méthodes de recherche d'emploi]

Author

Listed:
  • Pierre Cahuc

    (CREST-THEMA - CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique - THEMA - Théorie économique, modélisation et applications - UCP - Université de Cergy Pontoise - Université Paris-Seine - CNRS - Centre National de la Recherche Scientifique, IZA - Forschungsinstitut zur Zukunft der Arbeit - Institute of Labor Economics, CEPR - Center for Economic Policy Research)

  • Francois Fontaine

    (BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique, EUREQUA - Equipe Universitaire de Recherche en Economie Quantitative - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

In this paper, we provide a simple matching model with different search methods. We show that the individuals can choose the inefficient one. In the presence of different methods of search, unemployment benefits hikes can be used as a coordination device to improve welfare and decrease the unemployment rate.

Suggested Citation

  • Pierre Cahuc & Francois Fontaine, 2004. "Unemployment Subsidies as a Coordination Device When Different Jobsearch Methods Exist [Le rôle des allocations chômage en présence de différentes méthodes de recherche d'emploi]," Post-Print hal-00279332, HAL.
    • Handle: RePEc:hal:journl:hal-00279332
    DOI: 10.3917/reco.553.0591
    as

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