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Subsidizing extra jobs: promoting employment by taming the unions

Andreas Knabe and Ronnie Schöb.

in Oxford Economic Papers

October 2013; p ublished online September 2012 .

Journal Article. Subjects: Wages, Compensation, and Labour Costs; Mobility, Unemployment, and Vacancies; Taxation, Subsidies, and Revenue. 10028 words.

We study the subsidization of extra jobs in a general equilibrium framework. While the previous literature focuses on symmetric marginal employment subsidies where firms are rewarded when...

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