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

  • Stephan, Gesine


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

"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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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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