Beschreibung

"This paper investigates industry-specific effects of a targeted wage subsidy programme for unemployed workers. The analysis covers ten German industries and is based on rich administrative data. We compare wages, tenure and employment rates of workers taking up subsidised jobs with those of otherwise similar persons in unsubsidised work. We find for most industries that initially subsidised workers have longer tenure at their first employer and spend also more days in employment. Positive employment effects are found even for industries that are sometimes suspected to misuse the scheme as construction and temporary help firms. Wages of comparable subsidised and unsubsidised workers do not differ within most industries - exceptions are the metal sector with lower wages and the temporary help industry with higher wages for initially subsidised workers." (Author's abstract, IAB-Doku) ((en))