Employment subsidy under SGB II: A new instrument as ultima ratio

Abstract

"In Germany, a new employer subsidy provides an opportunity for long-term unemployed, very hard-to-place welfare recipients to find paid work. After two years in the programme, the job-participant-specific subsidy may be granted indefinitely, provided that the participant is unlikely to find unsubsidized work within the next two years. We analyse whether this new subsidy is indeed well-targeted in practice to hard-to-place welfare recipients. Compared to non-participating welfare recipients, participants in the programme are more often aged 50 years or older and characterised by bad health or some form of disability. However, we also find evidence (albeit descriptive) that a considerable number of participants in the programme may not fulfil the criterion of a near-zero chance of finding an unsubsidized job within two years." (Author's abstract, IAB-Doku) ((en))

Cite article

Koch, S., Kvasnicka, M. & Wolff, J. (2010): Beschäftigungszuschuss im SGB II: Ein neues Instrument als Ultima Ratio. (IAB-Kurzbericht 02/2010), Nürnberg, 8 p.