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Employer search and employment subsidies

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Author Info

  • Welters, Ricardo
  • Muysken, Joan

    (Maastricht University)

Abstract

In this paper insights into the literature on employment subsidy evaluation and that on employer search are merged to explore uncharted territory: the firm and job characteristics leading to deadweight loss in employment subsidy schemes. A model is developed which integrates various arguments found in the existing employer search literature. Using a survey of Dutch firms for 1999, the model predictions are confirmed. The richness of the data set enables one to construct some measures of deadweight loss which are new to the existing literature. It turns out that firms which experience low screening costs (large firms), firms that forego substantial production due to unfilled jobs (vacancies for full-time jobs) and firms operating in slack labour market conditions cause significantly more deadweight loss.

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Bibliographic Info

Paper provided by Maastricht University in its series Open Access publications from Maastricht University with number urn:nbn:nl:ui:27-17175.

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Date of creation: 2006
Date of revision:
Publication status: Published in Applied economics (2006) v.38, p.1435-1448
Handle: RePEc:ner:maastr:urn:nbn:nl:ui:27-17175

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Web page: http://www.maastrichtuniversity.nl/web/Home.htm

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References

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  1. Ours, J.C. van & Ridder, G., 1992. "Vacancies and recruitment of new employees," Open Access publications from Tilburg University urn:nbn:nl:ui:12-142178, Tilburg University.
  2. Burda, Michael & Wyplosz, Charles, 1994. "Gross worker and job flows in Europe," European Economic Review, Elsevier, vol. 38(6), pages 1287-1315, June.
  3. Calmfors, Lars & Forslund, Anders & Hemström, Maria, 2002. "Does Active Labour Market Policy Work? Lessons from the Swedish Experiences," Seminar Papers 700, Stockholm University, Institute for International Economic Studies.
  4. Burgess, Simon M, 1993. "A Model of Competition between Unemployed and Employed Job Searchers: An Application to the Unemployment Outflow Rate in Britain," Economic Journal, Royal Economic Society, vol. 103(420), pages 1190-204, September.
  5. Heckman, J.J. & Hotz, V.J., 1988. "Choosing Among Alternative Nonexperimental Methods For Estimating The Impact Of Social Programs: The Case Of Manpower Training," University of Chicago - Economics Research Center 88-12, Chicago - Economics Research Center.
  6. Giovanni Russo & Cees Gorter & Peter Nijkamp & Piet Rietveld, 1997. "Employers' Recruitment Behaviour: An Empirical Analysis of the Role of Personnel Management Attitudes ," LABOUR, CEIS, vol. 11(3), pages 599-623, November.
  7. Daniel Immergluck, 1996. "What employers want: Job prospects for less-educated workers," The Review of Black Political Economy, Springer, vol. 24(4), pages 135-143, June.
  8. Daniel Friedlander & David H. Greenberg & Philip K. Robins, 1997. "Evaluating Government Training Programs for the Economically Disadvantaged," Journal of Economic Literature, American Economic Association, vol. 35(4), pages 1809-1855, December.
  9. van Ours, Jan & Ridder, Geert, 1992. "Vacancies and the Recruitment of New Employees," Journal of Labor Economics, University of Chicago Press, vol. 10(2), pages 138-55, April.
  10. Barron, John M & Berger, Mark C & Black, Dan A, 1997. "Employer Search, Training, and Vacancy Duration," Economic Inquiry, Western Economic Association International, vol. 35(1), pages 167-92, January.
  11. Barron, John M & Bishop, John & Dunkelberg, William C, 1985. "Employer Search: The Interviewing and Hiring of New Employees," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 43-52, February.
  12. John P Martin, 1998. "What Works Among Active Labour Market Policies: Evidence from OECD Countries' Experiences," RBA Annual Conference Volume, in: Guy Debelle & Jeff Borland (ed.), Unemployment and the Australian Labour Market Reserve Bank of Australia.
  13. James W. Albrecht & Per-Anders Edin & Marianne Sundström & Susan B. Vroman, 1999. "Career Interruptions and Subsequent Earnings: A Reexamination Using Swedish Data," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 294-311.
  14. Robert G. Fay, 1996. "Enhancing the Effectiveness of Active Labour Market Policies: Evidence from Programme Evaluations in OECD Countries," OECD Labour Market and Social Policy Occasional Papers 18, OECD Publishing.
  15. LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-20, September.
  16. Ours, J.C. van, 1994. "Matching Unemployed and Vacancies at the Public Employment Office," Open Access publications from Tilburg University urn:nbn:nl:ui:12-142173, Tilburg University.
  17. Barron, John M & Black, Dan A & Loewenstein, Mark A, 1987. "Employer Size: The Implications for Search, Training, Capital Investment, Starting Wages, and Wage Growth," Journal of Labor Economics, University of Chicago Press, vol. 5(1), pages 76-89, January.
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Cited by:
  1. Welters, Riccardo & Muysken, Joan, 2008. "Inferring employer search behaviour from wage subsidy participation," Open Access publications from Maastricht University urn:nbn:nl:ui:27-23106, Maastricht University.

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