Wage, tenure, and employment effects of wage subsidies: Does the industry matter?

Abstract

"This paper explores the effects of a targeted wage subsidy program on wages, employment rates and tenure of previously unemployed workers. The analysis covers ten German industries and is based on rich administrative data. Within most industries, worker hired with the help of a subsidy earned similar short-run wages than similar unsubsidized workers. However, they fared significantly better in the longer run as they spent more days in employment during the time period under consideration (3.5 years). This may partly be contributed to the design of the subsidy scheme that provides a 'protection period' for newly hired subsidized workers." (Author's abstract, IAB-Doku) ((en))

Cite article

Stephan, G. (2011): Wage, tenure, and employment effects of wage subsidies: Does the industry matter? (LASER discussion papers 53), Erlangen, 27 p.