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Do hiring subsidies reduce unemployment among the elderly? Evidence from two natural experiments

Andreas Ammermüller, Thomas Zwick (), Bernhard Boockmann () and Michael Maier
Authors registered in the RePEc Author Service: Andreas Ammermueller

No 07-001, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: We estimate the effects of hiring subsidies for older workers on transitions from unemployment to employment in Germany. Using a natural experiment, our first set of estimates is based on a legal change extending the group of eligible unemployed persons. A subsequent legal change in the opposite direction is used to validate these results. Our data cover the population of unemployed jobseekers in Germany and was specifically made available for our purposes from administrative data. Consistent support for an employment effect of hiring subsidies can only be found for women in East Germany. Concerning other population groups, firms´ hiring behavior is hardly influenced by the program and hiring subsidies mainly lead to deadweight effects.

Keywords: Hiring subsidies; older workers; evaluation; natural experiments (search for similar items in EconPapers)
JEL-codes: C31 H24 J64 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-age, nep-exp, nep-lab and nep-pbe
Date: 2007
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