The Midwest Macro Meeting at the @ClevelandFed kicks off tomorrow! Looking forward to two days of great macro research here in the Land. Check out the full program: https://t.co/Mfw8aMM0iw A true team effort by the organizers and program committee at @ClevFedResearch.

You can find the current accepted version in working paper form here https://t.co/lkB1aqTtiL. We look forward to sharing the final published version once available!

Our work offers new insights for the design of active labor market policies in economies characterized by generous passive policies and structural rigidity.

A simple calibration to the Spanish economy shows that a balanced-budget increase in self-employment subsidies for the unemployed can yield substantial welfare gains in rigid labor markets. In more flexible markets, the gains remain positive but more modest.

(1) and (3) are stronger and (2) is weaker in rigid labor markets with higher firing costs. Yet the overall welfare impact is theoretically ambiguous.

The model highlights 3 mechanisms 1️⃣Direct emp. effect: + unemployed become self‑employed,⬇️unemployment 2️⃣Crowding‑out – unemp. workers shift from taking paid emp. to self-emp. 3️⃣Budget effect – subsidies can reduce UI spending in the future, freeing up fiscal space.

We develop a search-and-matching framework with firing costs to study how these subsidies interact with UI and firing costs. We evaluate their general-equilibrium interactions and the resulting employment, incentive, and fiscal trade-offs under a balanced-budget policy change.

Startup subsidies for the unemployed are increasingly used across Europe—see Spain’s “Capitalización del paro,” Germany’s “Gründungszuschuss,” and France’s “ARCE (Aide à la reprise ou à la création d’entreprise).”

We are thrilled to share that our paper "Self‑Employment Promotion as Active Labor Market Policy: Design and Trade‑Offs in Rigid Labor Markets", joint with Joaquín García-Cabo and @zoe_xie1, has been accepted for publication in Economics Letters 🎉.

The program for the workshop on Income Dynamics and the Family at the @bse_barcelona Summer Forum is out! https://t.co/jR62dtHVSs Can't wait! @hanna_wang_

Link to the program including more info about our speakers: https://t.co/yGKiwDeFvP We're very much excited and looking forward to two days of great papers and discussions!

And on the second day, we'll have (among others): @mathpedemonte, @A_Fieldhouse, @alonso_vilaco, @tradewartracker, @hyunju_econ, @Hugo_Lhu, @elpuntoderocio, @LeviGCrews

Don't forget to send us your papers before tomorrow!!

Looking for a postdoc for next year? I'm looking for candidates for a Marie Curie fellowship, please apply if you're interested in labor markets, gender and fertility:

Home office upgrade ☆

🚨 Last call for papers for BSE Summer Forum 2025! In 2024, researchers sent over 2k papers for 33 workshops. This year, we have over 40 workshops - how many papers we get depends on YOU! You've got just 7 days left to submit your work! #SummerForumBSE https://t.co/w6cT8xUDvz

En @EsadeEcPol buscamos un analista de investigación apasionado por las políticas públicas. Trabajarás con compañeros excepcionales en proyectos de alto impacto y crecerás en un entorno de aprendizaje continuo. ¡Aplica (antes del 7/03) aquí! 👇 https://t.co/RY8okFiM9v

📢 Exciting opportunity for PhD students! 🎓 The @stlouisfed Dissertation Internship program is now accepting applications 🗓️ Deadline: February 28th 🔗 Details: https://t.co/tUzx56V2CG Looking forward to seeing you at the @stlouisfed 🚀 #econtwitter

🚀 Exciting Research Opportunity! 🚀 We're hiring Research Fellows at the IDB Research Dept in DC! If you have (or are finishing) your Master’s in Econ & have a passion for impactful research, apply now 👉 https://t.co/tDDPmJwq3I #IDBJobs #Economics #Research #econtwitter

🚨NEW HIRE👨‍🏫 Another hiring season concluded with great news: Zhan Gao @ZhanGao67447167 from @USC_Econ will join SMU in the fall as an assistant professor. He is a superb econometrician with a wide research agenda. Check it out: https://t.co/uvvrPoRpNN Welcome Zhan! 🤠