The Effectiveness of Targeted Wage Subsidies for Hard-to-place Workers

Jaenichen U, Stephan G (2011)

Publication Type: Journal article

Publication year: 2011

Journal

Applied economics Taylor & Francis (Routledge)

Publisher: Taylor & Francis (Routledge)

Book Volume: 43

Pages Range: 1209-1225

DOI: 10.1080/00036840802600426

Abstract

Targeted wage subsidies paid to employers are an important element of active labour market policies in Germany. This article uses propensity score matching to investigate their effect on the employment and unemployment rates of subsidized hard-to-place workers. In a first scenario, we estimate the average treatment effect of a subsidy on previously unemployed individuals. A second scenario analyses the effects of a subsidy on employment probabilities conditional on taking-up employment. The third scenario investigates the additional effect of a subsidy on individuals, who have participated in a short-term training measure beforehand. Summing up and in line with the literature, the results show that subsidies have a favourable effect on the employment prospects of participants. © 2011 Taylor & Francis.

Authors with CRIS profile

Gesine Stephan Lehrstuhl für Volkswirtschaftslehre, insbesondere Empirische Mikroökonomie (Stiftungslehrstuhl)

Involved external institutions

Institut für Arbeitsmarkt- und Berufsforschung (IAB) der Bundesagentur für Arbeit (BA) DE Germany (DE)

How to cite

APA:

Jaenichen, U., & Stephan, G. (2011). The Effectiveness of Targeted Wage Subsidies for Hard-to-place Workers. Applied economics, 43, 1209-1225. https://dx.doi.org/10.1080/00036840802600426

MLA:

Jaenichen, Ursula, and Gesine Stephan. "The Effectiveness of Targeted Wage Subsidies for Hard-to-place Workers." Applied economics 43 (2011): 1209-1225.

BibTeX: Download