Wage subsidies, job-displacement and Swedish firms: A comparison between policy systems

Oskar Skans, Johan Vikström () and Stefano Lombardi

No 2018:6, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: This paper studies how New Start Jobs (Nystartsjobb) and Employment Subsidies Anställningsstöd) affect Swedish firms. We study effects on the number of employees, firm performance and other firm level outcomes. We use Swedish administrative data from the period 1998-2008. One result is that treated firms substantially outperform other recruiting firms after hiring through subsidies, both in terms of the number of employees and in terms of various production measures, despite having identical pre-match trajectories. This pattern is clear for the period with Employment Subsidies, but less clear for the period with New Start Jobs. For New Starts Jobs we instead see that they have a clear positive effect on firms' survival rates. Overall, our results suggest that targeted employment subsidies can have large positive effects on post-match outcomes of the hiring firms.

Keywords: wage subsidies; labor demand; firms performance (search for similar items in EconPapers)
JEL-codes: J08 J20 J60 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2018-04-23
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.ifau.se/globalassets/pdf/se/2018/wp201 ... n-policy-systems.pdf Full text (application/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:2018_006

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 ( this e-mail address is bad, please contact ).