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Structural Unemployment in Luxembourg
Bad Luck or Rational Choice?

by William Gbohoui

Series:Working Paper No. 19/243
ISBN 9781513515427
Code: #WPIEA2019243

Publication year: 2019

Cdn: $27.00; US: $25.00
Language: English
42 pages
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This paper combines both micro and macro approaches to identify the drivers of (un)employment and inactivity in Luxembourg. The young, low-skilled, and non-EU migrants are found to be the most vulnerable groups in the labor market. In addition to skills mismatches, work disincentives embedded in the tax-benefit system constitute a factor explaining structural unemployment. High unemployment of young and low-skilled workers reflects substantial unemployment traps, while disincentives for second earners (respectively the generosity of the pension system) contribute to lower labor market participation of women (respectively seniors). Further reduction of structural unemployment requires better integration of vulnerable groups into the labor market and improved targeting of benefits to make work more rewarding.
Structural Unemployment in Luxembourg
Cdn: $27.00; US: $25.00
International Monetary Fund (IMF) BookID: 126358 Added: 2019.11.23