IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp5078.html
   My bibliography  Save this paper

Wages, Employment and Tenure of Temporarily Subsidized Workers: Does the Industry Matter?

Author

Listed:
  • Stephan, Gesine

    (Institute for Employment Research (IAB), Nuremberg)

Abstract

This paper explores whether wage, employment and tenure outcomes of workers taking up a job subsidized by the German Federal Employment Agency differ by industry. The analysis utilizes administrative data and statistical matching techniques; it covers an observation period of 3.5 years. First, we conduct a within-industry comparison of temporarily subsidized and otherwise similar unsubsidized workers. The findings show for most industries that subsidized workers had similar short-run wages, but fared significantly better in the longer run. Second, we compare labor market outcomes of subsidized workers within each industry with those of similar subsidized workers in other industries. The main result is that cumulated wages of workers would not have differed significantly, if they had been hired in another industry instead. However, we find significant differences in short-term wages, employment and tenure outcomes across industries. Finally, from a fiscal point of view it seems more advantageous to subsidize workers hired in industries that are less subject to demand fluctuations.

Suggested Citation

  • Stephan, Gesine, 2010. "Wages, Employment and Tenure of Temporarily Subsidized Workers: Does the Industry Matter?," IZA Discussion Papers 5078, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5078
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp5078.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bernhard Boockmann & Susanne Steffes, 2010. "Workers, Firms, or Institutions: What Determines Job Duration for Male Employees in Germany?," ILR Review, Cornell University, ILR School, vol. 64(1), pages 109-127, October.
    2. Christian, GOEBEL, 2006. "The effect of temporary employment subsidies on employment duration," Discussion Papers (ECON - Département des Sciences Economiques) 2006035, Université catholique de Louvain, Département des Sciences Economiques.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Heyer, Gerd & Koch, Susanne & Stephan, Gesine & Wolff, Joachim, 2012. "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 refor," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 45(1), pages 41-62.
    2. Joachim Wolff & Gesine Stephan, 2013. "Subsidized work before and after the German Hartz reforms: design of major schemes, evaluation results and lessons learnt," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-24, December.
    3. Rainer Eppel & Helmut Mahringer, 2013. "Do Wage Subsidies Work in Boosting Economic Inclusion? Evidence on Effect Heterogeneity in Austria," WIFO Working Papers 456, WIFO.
    4. 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 refor," IAB-Discussion Paper 201117, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Rainer Eppel & Helmut Mahringer, 2012. "Do wage subsidies work in boosting economic inclusion? Evidence on e," EcoMod2012 4065, EcoMod.
    6. Achatz, Juliane & Trappmann, Mark, 2011. "Arbeitsmarktvermittelte Abgänge aus der Grundsicherung : der Einfluss von personen- und haushaltsgebundenen Barrieren," IAB-Discussion Paper 201102, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. Lutz Bellmann & Gesine Stephan, 2014. "Which firms use targeted wage subsidies? An empirical note for Germany [Welche Betriebe nutzen Eingliederungszuschüsse in Deutschland?]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 47(1), pages 165-175, March.
    8. Gerd Heyer & Susanne Koch & Gesine Stephan & Joachim Wolff, 2012. "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 ref," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 45(1), pages 41-62, March.
    9. Gerd Heyer & Susanne Koch & Gesine Stephan & Joachim Wolff, 2012. "Evaluation der aktiven Arbeitsmarktpolitik: Ein Sachstandsbericht für die Instrumentenreform 2011," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 45(1), pages 41-62, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stephan, Gesine, 2010. "Wages, employment and tenure of temporarily subsidized workers: Does the industry matter? (Löhne, Beschäftigung und Betriebszugehörigkeitsdauer von zeitweise subventionierten Arbeitnehmern: Spielt die," IAB-Discussion Paper 201012, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    2. Goerke, Laszlo & Pannenberg, Markus, 2021. "Wage Determination in the Shadow of the Law: The Case of Works Councilors in Germany," GLO Discussion Paper Series 789, Global Labor Organization (GLO).
    3. Martin Kroczek, 2021. "Analyzing Nurses‘ Decisions to Leave Their Profession – a Duration Analysis," IAW Discussion Papers 136, Institut für Angewandte Wirtschaftsforschung (IAW).
    4. Cornelißen Thomas & Hübler Olaf, 2011. "Unobserved Individual and Firm Heterogeneity in Wage and Job-Duration Functions: Evidence from German Linked Employer–Employee Data," German Economic Review, De Gruyter, vol. 12(4), pages 469-489, December.
    5. Amparo Nagore García & Arthur van Soest, 2017. "New job matches and their stability before and during the crisis," International Journal of Manpower, Emerald Group Publishing Limited, vol. 38(7), pages 975-995, October.
    6. Ronald Bachmann & Daniel Baumgarten & Joel Stiebale, 2014. "Foreign direct investment, heterogeneous workers and employment security: Evidence from Germany," Canadian Journal of Economics, Canadian Economics Association, vol. 47(3), pages 720-757, August.
    7. Hirsch, Boris & Schank, Thorsten & Schnabel, Claus, 2009. "Works Councils and Separations: Voice, Monopoly, and Insurance Effects," IZA Discussion Papers 4126, Institute of Labor Economics (IZA).
    8. Robert Orlowski & Regina T. Riphahn, 2008. "The East German Wage Structure after Transition," SOEPpapers on Multidisciplinary Panel Data Research 148, DIW Berlin, The German Socio-Economic Panel (SOEP).
    9. 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.
    10. Tobias Brändle, 2017. "Flexible collective bargaining agreements: Still a moderating effect on works council behaviour?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 38(8), pages 1137-1153, December.
    11. Scholz, Robert, 2021. "Labour in the Board and Good Work: How to Measure and Evidence From Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 32(3), pages 219-243.
    12. Adam Julian B., 2019. "Voluntary Quits: Do Works Councils Matter? An Analysis of the Reform of the German Works Constitution Act 2001," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 239(1), pages 67-109, January.
    13. Boris Hirsch & Elke J. Jahn & Thomas Zwick, 2020. "Birds, Birds, Birds: Co‐Worker Similarity, Workplace Diversity and Job Switches," British Journal of Industrial Relations, London School of Economics, vol. 58(3), pages 690-718, September.
    14. Olga Bohachova & Bernhard Boockmann & Claudia M. Buch, 2011. "Labor Demand During the Crisis: What Happened in Germany?," CESifo Working Paper Series 3625, CESifo.
    15. Harald Pfeifer, 2014. "Absenteeism in Apprenticeships: What Role Do Works Councils Play?," Economics of Education Working Paper Series 0098, University of Zurich, Department of Business Administration (IBW), revised Aug 2015.
    16. Schank, Thorsten & Bossler, Mario & Mosthaf, Alexander, 2016. "More female manager hires through more female managers? Evidence from Germany," VfS Annual Conference 2016 (Augsburg): Demographic Change 145733, Verein für Socialpolitik / German Economic Association.
    17. Kerndler, Martin, 2019. "Size and persistence matter: Wage and employment insurance at the micro level," ECON WPS - Working Papers in Economic Theory and Policy 04/2019, TU Wien, Institute of Statistics and Mathematical Methods in Economics, Economics Research Unit.
    18. Boris Hirsch & Claus Schnabel, 2012. "Women Move Differently: Job Separations and Gender," Journal of Labor Research, Springer, vol. 33(4), pages 417-442, December.
    19. Simionescu Mihaela & Naroș Maria-Simona, 2019. "The Unemployment of Highly Educated People in Romania. A Panel VAR Approach," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 29(3), pages 20-37, September.
    20. Boris Hirsch & Elke J. Jahn & Thomas Zwick, 2019. "Birds, Birds, Birds: Co-worker Similarity, Workplace Diversity, and Voluntary Turnover," Working Paper Series in Economics 387, University of Lüneburg, Institute of Economics.

    More about this item

    Keywords

    program evaluation; industry-specific effects; wage subsidies;
    All these keywords.

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp5078. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.