Wage subsidies and individual unemployment : analyses on the basis of combined survey and process data using propensity score matching

Abstract

"The paper presents results from a micro-econometric evaluation of targeted wage subsidies for the Federal Republic of Germany. The influence of wage subsidies on the periods of unemployment of the people participating in a wage subsidy programme is examined. The data basis is an IAB survey conducted for evaluation purposes in selected employment offices in early 1999. Information regarding the destination of participants and nonparticipants is obtained from the administrative data of the Federal Employment Service (Bundesanstalt für Arbeit). The selected methodical approach for estimating the effects of the subsidies takes into account the possible correlation of inflow probabilities and outcome variables. The results of the study indicate for all types of subsidies that on average the periods of unemployment of the assisted people are reduced as a result of the assistance. However, for the instruments that are more strongly oriented towards target groups the assistance periods or the subsequent compulsory employment periods are not yet over. For the instruments that are less strongly oriented towards target groups the estimated effects of the subsidies in many cases no longer differ significantly from zero following the end of the assistance periods." (Author's abstract, IAB-Doku) ((en))

Cite article

Jaenichen, U. (2002): Lohnkostenzuschüsse und individuelle Arbeitslosigkeit. Analysen auf der Grundlage kombinierter Erhebungs- und Prozessdaten unter Anwendung von Propensity Score Matching. In: Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Vol. 35, No. 3, p. 327-351.