Betriebliche Bestimmungsfaktoren zur Nutzung staatlicher Hilfen in Ostdeutschland

Peter Ellguth, Johannes Kirsch and Astrid Ziegler

Chapter 11 in List Forum Band 32, 2006, vol. 3, pp 190-213 from List Gesellschaft e.V.

Abstract: The governmernt allocates enormous financial support to East German businesses through business development and business-oriented labour-market policies. Until now, no study has examined which factors are decisive in determining businesses take up these subsidies. The following report has reviewed this issue by means of a multivariate procedure (probit procedure) based on IAB business panel data. Findings indicate that larger and growing businesses with qualified employees and, to some extent, a good technical position (investment support) draw on such aid. Businesses in economically difficult or crises situations, meanwhile, access these two types of support to a lesser extent. Form an employment policy perspective, the fact that investment subsidies are primariliy utilised by businesses not commited to branch-level collective agreements and that labour cost subsidies are predominantly taken up by companies without works councils, must be considered in a critical light. Public funding is thus largely allocated to businesses with no obligations to meet existing minimum standards in working and remuneration conditions..(Original text only available in german language)

Keywords: Subsidies; East Germany; Factors (search for similar items in EconPapers)
Date: 2006
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