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...