ON LABOR-MARKET POLICIES AND AGGREGATE UNEMPLOYMENT OUTFLOWS

This paper is interested in the modelling of the relationship between active and passive labour market policies and the aggregate unemployme nt outflow rate. Our model is based on a matching function and include s a simple representation of the competition between various groups of job searchers. The empirical analysis uses Belgian data. Faced with v ariables that are often integrated of order 1 according to the usual t ests but which cannot strictly speaking be integrated, we contribute t o an important methodological debate by comparing the conclusions of a classical econometric analysis and a cointegration approach.