During the global pandemic, the data show an unprecedented surge in initial claims. Initial claims are a good proxy for separating employment matches. Use the twosided search model to argue for a set of policy interventions that (a) subsidise the search costs faced by firms and (b) aim to raise the efficiency of the matching process. Which one of these would be more effective in stimulating employment and output?
During the global pandemic, the data show an unprecedented surge in initial claims. Initial claims are a good proxy for separating employment matches. Use the twosided search model to argue for a set of policy interventions that (a) subsidise the search costs faced by firms and (b) aim to raise the efficiency of the matching process. Which one of these would be more effective in stimulating employment and output?
Chapter1: Making Economics Decisions
Section: Chapter Questions
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During the global pandemic, the data show an unprecedented surge in initial claims. Initial claims are a good proxy for separating employment matches. Use the twosided search model to argue for a set of policy interventions that (a) subsidise the search costs faced by firms and (b) aim to raise the efficiency of the matching process. Which one of these would be more effective in stimulating employment and output?
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