Worker-level and Firm-level Effects of a Wage Subsidy Program for Highly Educated Labor: Evidence from Denmark

Ulrich Kaiser () and Johan Moritz Kuhn ()
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Johan Moritz Kuhn: EPAC

No 9184, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We study the effects of a Danish wage subsidy program for highly educated workers on the labor market outcomes of the persons participating in the program and on the performance of the firms that hired these subsidized workers. Using data on the population of program participants, both individuals and firms, we find that the program had positive effects on employment and wages the year individuals participate in the program. For wages, we also find positive and statistically significant effects for the two subsequent years. At the program participating firm level, we find statistically significant effects on the number of highly educated employees for both the period of program participation and the subsequent time period.

Keywords: program evaluation; firm performance; wage subsidies (search for similar items in EconPapers)
JEL-codes: D04 O31 O38 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2015-07
New Economics Papers: this item is included in nep-bec, nep-eff and nep-eur
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Published - published in: Research Policy, 2016, 45 (9), 1939-1943

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Journal Article: Worker-level and firm-level effects of a wage subsidy program for highly educated labor: Evidence from Denmark (2016)
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