The effectiveness of targeted wage subsidies for hard-to-place workers

Ursula Jaenichen and Gesine Stephan
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Gesine Stephan: Institute for Employment Research (IAB), Nuremberg, Germany

No 200716, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "Targeted wage subsidies paid to employers are an important element of active labour market policies in Germany. This paper uses propensity score matching to investigate their effect on subsidised 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 takingup 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." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Eingliederungszuschuss; Erfolgskontrolle; Hartz-Reform; schwervermittelbare Arbeitslose; Trainingsmaßnahme; Arbeitsmarktpolitik (search for similar items in EconPapers)
JEL-codes: J64 J65 J68 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2007
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (15)

Published in/as: Applied Economics, Vol. 43, No. 10 (2011), S. 1209-1225, doi:10.1080/00036840802600426

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Journal Article: The effectiveness of targeted wage subsidies for hard-to-place workers (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:200716

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