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The effectiveness of targeted wage subsidies for hard-to-place workers
Die Effizienz zielorientierter Lohnsubventionen für schwer vermittelbare Arbeitslose
[working paper]
Corporate Editor
Institut für Arbeitsmarkt- und Berufsforschung der Bundesagentur für Arbeit (IAB)
Abstract "Targeted wage subsidies paid to employers are an important element of active labour market policies in Germany. This paper uses propensity score matching to investigate their effect on subsidised hard-to-place workers. In a first scenario, we estimate the average treatment effect of a subsidy on pr... view more
"Targeted wage subsidies paid to employers are an important element of active labour market policies in Germany. This paper uses propensity score matching to investigate their effect on subsidised hard-to-place workers. In a first scenario, we estimate the average treatment effect of a subsidy on previously unemployed individuals. A second scenario analyses the effects of a subsidy on employment probabilities conditional on takingup employment. The third scenario investigates the additional effect of a subsidy on individuals, who have participated in a short-term training measure beforehand. Summing up and in line with the literature, the results show that subsidies have a favourable effect on the employment prospects of participants." (author's abstract)... view less
Keywords
subsidy; Hartz-Reform; results measurement; measure; Federal Republic of Germany; employment policy; occupational integration; labor market policy; unemployment
Classification
Labor Market Policy
Method
applied research; empirical; evaluation; quantitative empirical
Document language
English
Publication Year
2007
City
Nürnberg
Page/Pages
37 p.
Series
IAB Discussion Paper: Beiträge zum wissenschaftlichen Dialog aus dem Institut für Arbeitsmarkt- und Berufsforschung, 16/2007
Status
reviewed
Licence
Deposit Licence - No Redistribution, No Modifications
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