Selectivity in the process of entering wage subsidy programmes

Abstract

"A major aim of wage subsidies is to influence the demand for labour in favour of different target groups. In this paper individual determinants of the selection for different kinds of hiring subsidy programmes are examined. In order to analyse whether there are differences in the employment prospects of people entering subsidised employment and people moving from unemployment to employment without the support of a hiring subsidy, potential probabilities of remaining unemployed are simulated. The data base consists of a sample of people who entered subsidised employment in the first months of 1999 and a control sample of people who were registered as unemployed in January 1999. The results of the study can be summarised to the effect that characteristics which point to comparatively good employment prospects also have a positive influence on the access to subsidised employment. This selection of people who tend to have better employment prospects is counteracted by the eligibility rules for the types of subsidies targeting the hard to place." (Author's abstract, IAB-Doku) ((en))

Cite article

Jaenichen, U. (2000): Selektivität beim Zugang in Förderung durch betriebliche Einstellungshilfen. In: Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Vol. 33, No. 3, p. 445-461.