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

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  • 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 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))

Suggested Citation

  • Stephan, Gesine, 2010. "Employer wage subsidies and wages in Germany : empirical evidence from individual data," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 43(1), pages 53-71.
  • Handle: RePEc:iab:iabzaf:v:2010:i:1:p:53-71
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    File URL: http://doku.iab.de/zaf/2010/2010_1_zaf_stephan.pdf
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    References listed on IDEAS

    as
    1. Sarah Hamersma, 2011. "Why Don'T Eligible Firms Claim Hiring Subsidies? The Role Of Job Duration," Economic Inquiry, Western Economic Association International, vol. 49(3), pages 916-934, July.
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    More about this item

    Keywords

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

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy

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