Sectoral shocks, reallocation, and labor market policies.

Autor/inn/en	Garcia-Cabo, Joaquin; Lipinska, Anna; Navarro, Gaston
Titel	Sectoral shocks, reallocation, and labor market policies. Gefälligkeitsübersetzung: Sektorale Schocks, Umverteilung und Arbeitsmarktpolitik.
Quelle	In: European economic review, (2023) 156, Art. 104494, 28 S. PDF als Volltext Link als defekt meldenVerfügbarkeit
Sprache	englisch
Dokumenttyp	online; gedruckt; Zeitschriftenaufsatz
ISSN	0014-2921; 1873-572X
DOI	10.1016/j.euroecorev.2023.104494
Schlagwörter	Beschäftigungseffekt; Lohnsubvention; Produktivitätseffekt; Rezession; Arbeitskraft; Arbeitslosenversicherung; Arbeitsloser; Arbeitsmarktpolitik; Qualifikationserhalt; Internationaler Vergleich; Auswirkung; Dequalifizierung; Sektorale Verteilung; Umverteilung; Europa; USA
Abstract	"Unemployment insurance and wage subsidies are key tools to support labor markets in recessions. We develop a multisector search-and-matching model with on-the-job human capital accumulation to study labor market policy responses to sector-specific shocks. Our calibration accounts for structural differences in labor markets between the United States and the euro area, including a lower job-finding rate in the latter. We use the model to evaluate unemployment insurance and wage subsidy policies in recessions of different duration. After a temporary sector-specific shock, unemployment insurance improves reallocation toward productive sectors at the cost of initially higher unemployment and, thus, human capital destruction. By contrast, wage subsidies reduce unemployment and preserve human capital at the cost of limiting reallocation. In the United States, unemployment insurance is preferred to wage subsidies when it does not distort job creation for too long. In the euro area, wage subsidies are preferred, given the lower job-finding rate and reallocation." The study refers to the period 1990-2022. (Author's abstract, IAB-Doku, © 2023 Elsevier)..
Erfasst von	Institut für Arbeitsmarkt- und Berufsforschung, Nürnberg
Update	2024/1