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Employer wage subsidies and wages in Germany : some evidence from individual data

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Author Info

  • Stephan, Gesine

    () (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

Abstract

"In Germany, targeted wage subsidies to employers are an important instrument of active labor market policy. This paper utilizes process generated data of the German Public Employment Service to compare the wages of individuals taking up a subsidized job with those of otherwise similar individuals who found an unsubsidized job. The results indicate that subsidized jobs are not associated with gains or losses regarding daily wages, which might be contributed to wage setting within the German system of industrial relations. 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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Bibliographic Info

Paper provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its series IAB Discussion Paper with number 200909.

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Length: 34 pages
Date of creation: 02 Jun 2009
Date of revision:
Publication status: published as: Zeitschrift für ArbeitsmarktForschung, Jg. 43, H. 1 (2010), p. 53-71
Handle: RePEc:iab:iabdpa:200909

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Related research

Keywords: Eingliederungszuschuss - Auswirkungen; Lohnkostenzuschuss - Erfolgskontrolle; arbeitsmarktpolitische Maßnahme; Lohnhöhe; Beschäftigungsdauer;

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Citations

Blog mentions

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  1. The impact of wage subsidies
    by Economic Logician in Economic Logic on 2009-08-04 14:53:00
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Cited by:
  1. Heyer, Gerd & Koch, Susanne & Stephan, Gesine & Wolff, Joachim, 2011. "Evaluation der aktiven Arbeitsmarktpolitik: Ein Sachstandsbericht für die Instrumentenreform 2011 (Evaluation of active labor market programs : a summary of recent results for the German program refo," IAB Discussion Paper 201117, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  2. Mosthaf, Alexander & Schank, Thorsten & Schnabel, Claus, 2009. "Low-wage employment versus unemployment: which one provides better prospects for women?," Discussion Papers 65, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.

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