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Inhaltsbereich: Institut für Arbeitsmarkt- und Berufsforschung

Employer wage subsidies and wages in Germany

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Abstract

"In Germany, targeted wage subsidies to employers are an important instrument of active labor market policy. This paper compares the wages of individuals taking up a subsidized job with those of otherwise similar individuals who found an unsubsidized job, combining propensity score matching with a differences-in-differences strategy. The results indicate for the short-run that subsidized jobs are not associated with gains or losses regarding daily wages. Nonetheless, because subsequent employment rates of subsidized persons are higher on average, we find a positive relationship between cumulated wages and subsidization." (Author's abstract, IAB-Doku) ((en))

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Bibliographical information

Stephan, Gesine (2010): Employer wage subsidies and wages in Germany * empirical evidence from individual data. In: Zeitschrift für ArbeitsmarktForschung, Vol. 43, Iss. 1, pp. 53-71.
 

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