دانلود رایگان مقاله انگلیسی سیاست های دولت مطلوب مربوط به بیکاری - Sage 2017

Abstract

This article studies the optimal government policies related to unemployment in a frictional labor market. To achieve the optimal allocation, we find that the government should not issue unemployment compensation or subsidies for hiring costs. Moreover, as both firms and households experience disastrous consequences related to the minimum wage, the government should not intervene in the labor market to influence the wage rate and should not set any minimum wage. What the government can do is to make appropriate expenditures on matching efficacy. Furthermore, considering heterogeneous labor abilities in the model does not change our main finding.

Concluding Remarks

This article studies the effects of government policies related to unemployment in a decentralized economy and attempts to determine the optimal policies in a centrally planned economy. When conducting comparative statics, we find that unemployment compensation and minimum wages are not beneficial policies for either firms or households. Both policies reduce output, firm profits, and household welfare. Moreover, although positive subsidies for hiring costs have benefits for output, they reduce firm profit, and excessively large subsidies will diminish household welfare. In regard to public spending on matching efficacy, which does enhance output, we can determine the positive level of spending required to maximize household welfare.

To achieve the optimal allocation, the government should not provide unemployment compensation and should not subsidize hiring costs for firms. Furthermore, as both firms and households experience disastrous consequences related to the minimum wage, the government should not intervene in terms of the wage rate in the labor market and should not set any minimum wage. What the government can do is to make suitable expenditures on matching efficacy. In addition, considering heterogeneous labor abilities in the model does not change our main finding.