Skip to content

Publication

Betriebliche Bestimmungsfaktoren zur Nutzung staatlicher Hilfen in Ostdeutschland

Abstract

"The government allocates enormous financial support to East German businesses through business development und business-oriented labour-market policies. Until now, no study has examined which factors are decisive in determining whether businesses Lake up these subsidies. The following report has reviewed this issue by means or a multivariate procedure (probit procedure) based an 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 en such aid. Businesses in economically difficult or crisis situations, meanwhile, access these two types or support to a lesser extent. From an employment policy perspective, the fact that Investment subsidies are primarily utilised by businesses not committed to branch-level collective agreements and that labour cost subsidies are predominantly taken up by companies without works councils, must he 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." (Author's abstract, IAB-Doku) ((en))

Cite article

Ellguth, P., Kirsch, J. & Ziegler, A. (2006): Betriebliche Bestimmungsfaktoren zur Nutzung staatlicher Hilfen in Ostdeutschland. In: List-Forum für Wirtschafts- und Finanzpolitik, Vol. 32, No. 3, p. 190-213.