DP1675 Youth Unemployment and Government Policy

Author(s):	Mike Orszag, Dennis J. Snower
Publication Date:	July 1997
Keyword(s):	Adult Unemployment, Employment Policy, Long-Term Unemployment, Unemployment Benefits, Youth Unemployment
JEL(s):	J23, J24, J31, J32, J64
Programme Areas:	Human Resources
Link to this Page:	cepr.org/active/publications/discussion_papers/dp.php?dpno=1675

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.