Working Paper: CEPR ID: DP1675
Authors: J. Michael Orszag; Dennis J. Snower
Abstract: This paper discusses how employment vouchers should depend on age in a simple overlapping generations model in which workers are either young or old. We find that young workers should receive higher vouchers as displacement of the old rises and as the deadweight loss from providing vouchers to the old increases. We provide a simple characterization of the difference between youth and old vouchers in the context of our model.
Keywords: youth employment; adult unemployment; employment policy; unemployment benefits; long-term unemployment; policy and demographics
JEL Codes: J23; J24; J31; J32; J64
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| displacement of older workers (J63) | amount of vouchers for young workers (I22) |
| amount of vouchers for young workers (I22) | hiring of young workers (J63) |
| hiring of young workers (J63) | youth unemployment (J64) |