Wage Subsidies for Needy Job-Seekers and Their Effect on Individual Labour Market Outcomes after the German Reforms

Sarah Bernhard (), Hermann Gartner and Gesine Stephan
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Sarah Bernhard: Institute for Employment Research (IAB), Nuremberg

No 3772, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Our paper estimates the average effect of wage subsidies – paid to employers for a limited period of time – on the labour market prospects of needy job-seekers without access to insurance-paid 'unemployment benefit I'. The results show that wage subsidies had large and significant favourable effects: 20 months after taking up a subsidised job, the share of persons in regular employment is nearly 40 percentage points higher across participants. On the whole, groups with particular placement difficulties benefit comparatively more from subsidisation.

Keywords: wage subsidies; unemployment benefits II for needy job-seekers; evaluation of active labour market programmes; propensity score matching (search for similar items in EconPapers)
JEL-codes: J64 J65 J68 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2008-10
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (38)

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Working Paper: Wage subsidies for needy job-seekers and their effect on individual labour market outcomes after the German reforms (2008)
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