The Impact of Wage Subsidies on Jobseekers' Outcomes and Firm Employment

Sarah Crichton () and David Maré
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Sarah Crichton: Labour and Immigration Research Centre, Ministry of Business, Innovation and Employment

No 13_05, Working Papers from Motu Economic and Public Policy Research

Abstract: The study examines the impact of wage subsidies on assisted jobseekers and on the firms that employ them, using propensity matching methods. Overall we find that starting a subsidised job leads to significant employment and earning benefits for assisted jobseekers over several years. Subsidised workers are disproportionately hired into expanding firms, though we cannot determine whether the expansion would have occurred in the absence of the subsidy.

Keywords: wage subsidy; active labour market policies; propensity matching (search for similar items in EconPapers)
JEL-codes: J08 J38 J64 (search for similar items in EconPapers)
Pages: 88 pages
Date: 2013-05
New Economics Papers: this item is included in nep-hme, nep-lab, nep-lma and nep-ltv
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:mtu:wpaper:13_05

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