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Worker-level and Firm-level Effects of a Wage Subsidy Program for Highly Educated Labor: Evidence from Denmark

Author

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  • Kaiser, Ulrich

    () (University of Zurich)

  • Kuhn, Johan Moritz

    () (CEBR, Copenhagen)

Abstract

We study the effects of a Danish wage subsidy program for highly educated workers on the labor market outcomes of the persons participating in the program and on the performance of the firms that hired these subsidized workers. Using data on the population of program participants, both individuals and firms, we find that the program had positive effects on employment and wages the year individuals participate in the program. For wages, we also find positive and statistically significant effects for the two subsequent years. At the program participating firm level, we find statistically significant effects on the number of highly educated employees for both the period of program participation and the subsequent time period.

Suggested Citation

  • Kaiser, Ulrich & Kuhn, Johan Moritz, 2015. "Worker-level and Firm-level Effects of a Wage Subsidy Program for Highly Educated Labor: Evidence from Denmark," IZA Discussion Papers 9184, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp9184
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    References listed on IDEAS

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    4. Perloff, Jeffrey M & Wachter, Michael L, 1979. "The New Jobs Tax Credit: An Evaluation of the 1977-78 Wage Subsidy Program," American Economic Review, American Economic Association, vol. 69(2), pages 173-179, May.
    5. Kaiser, Ulrich & Kuhn, Johan M., 2012. "Long-run effects of public–private research joint ventures: The case of the Danish Innovation Consortia support scheme," Research Policy, Elsevier, vol. 41(5), pages 913-927.
    6. Kluve, Jochen, 2010. "The effectiveness of European active labor market programs," Labour Economics, Elsevier, vol. 17(6), pages 904-918, December.
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    Cited by:

    1. Amina Ebrahim & Murray Leibbrandt & Vimal Ranchhod, 2017. "The effects of the Employment Tax Incentive on South African employment," WIDER Working Paper Series 005, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    program evaluation; firm performance; wage subsidies;

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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