%0 Journal Article
%T Labor Market Policies in a Sector Specific Search Model with Heterogeneous Firms and Workers
%A Lucas Navarro
%J Revista de An¨˘lisis Econ¨®mico (RAE)
%D 2007
%I Georgetown University, Universidad Alberto Hurtado
%X This paper analyzes the effects of unemployment benefits and minimum wage policies in a noncompetitive labor market with two sectors, two types of workers and sector specific search. It finds that those policies can shift the job composition towards low-wage jobs and that they will never increase the number of higha?ˇ®wage jobs. Welfare can only increase because of reduced social vacancy creation costs. The paper is an extension of Acemoglu (2001) who finds in the homogeneousa?ˇ®worker random search version of the model that the mentioned labor market policies can shift the job composition toward higha?ˇ®wage jobs, increase the number of higha?ˇ®wage jobs and welfare.
%U http://www.rae-ear.org/index.php/rae/article/view/71