How long and how much? Learning about the design of wage subsidies from policy discontinuities

Anna Sjögren and Johan Vikström (johan.vikstrom.econ@gmail.com)

No 2013:18, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: Employment and wage subsidies are used to combat long-term unemployment, yet there is little research to guide the design of such programs. Discontinuities in the design and implementation of wage subsidies under the Swedish New Start Jobs-policy allow us to study effects of both subsidy rate and subsidy duration. We find that doubling of the subsidy rate has a substantial impact on job finding rates but that doubled subsidy duration has no such effect. We find the opposite pattern when we study the effects on the probability of staying employed for those who find subsidized employment. Interestingly, the positive employment effect of doubling the subsidy duration persists after the expiry of the employment subsidies.

Keywords: Wage-subsidies; subsidy duration; duration; subsidy rate; policy design; long-term unemployment (search for similar items in EconPapers)
JEL-codes: J08 J64 J68 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2013-09-04
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Forthcoming as Sjögren, Anna and Johan Vikström, 'How long and how much? Learning about the design of wage subsidies from policy discontinuities' in Labour Economics, 2015.

Downloads: (external link)
http://www.ifau.se/Upload/pdf/se/2013/wp2013-18-How-long-and-how-much.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.ifau.se/Upload/pdf/se/2013/wp2013-18-How-long-and-how-much.pdf [301 Moved Permanently]--> https://www.ifau.se/Upload/pdf/se/2013/wp2013-18-How-long-and-how-much.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:ifauwp:2013_018

Access Statistics for this paper

More papers in Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy IFAU, P O Box 513, SE-751 20 Uppsala, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Ali Ghooloo (ali.ghooloo@ifau.uu.se this e-mail address is bad, please contact repec@repec.org).