Policy research on stabilizing and expanding employment of SMEs
This paper develops a search and matching model in the labor market to analyze the effects of macroeconomic policies on stabilizing and expanding employment for small and medium Enterprises(SMEs).The model finds that the transmission in response to the aggregate shocks of firm's productivity and job stability results from an interaction of two effects:The direct effect of rising firm's expected profits,which releases more job vacancies,and the equilibrium effect of rising market tightness,which allows unemployed workers to find jobs more quickly,thus leading to a higher reservation wage.The model is then calibrated to the China monthly macroeconomic data and compares the stabilizing and expanding effects of four types of employment policies(tax reduction,job subsidy,training subsidy,and unemployment benefit)through counterfactual analysis.After robustness checks,we accordingly provide pertinent policy recommendations.Specifically,tax reduction performs best in expanding employment,while job subsidy performs best in stabilizing employment;The expanding effect of training subsidy policy is not substantially significant,but its stabilizing effect is the most balanced;Unemployment benefit has a trade-off between improving social welfare and decreasing job opportunities.
employment policysearch and matchingmarket tightnesssmall and medium enterprisesjob stabilization and expansion
万方数据
维普
