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The Impact of Wage Subsidies on Jobseekers' Outcomes and Firm Employment

Author

Listed:
  • Sarah Crichton

    (Labour and Immigration Research Centre, Ministry of Business, Innovation and Employment)

  • Maré, David C

    (Motu Economic and Public Policy Research)

Abstract

The study examines the impact of wage subsidies on assisted jobseekers and on the firms that employ them, using propensity matching methods. Overall we find that starting a subsidised job leads to significant employment and earning benefits for assisted jobseekers over several years. Subsidised workers are disproportionately hired into expanding firms, though we cannot determine whether the expansion would have occurred in the absence of the subsidy.

Suggested Citation

  • Sarah Crichton & Maré, David C, 2013. "The Impact of Wage Subsidies on Jobseekers' Outcomes and Firm Employment," Working Papers 13_05, Motu Economic and Public Policy Research.
    • Handle: RePEc:mtu:wpaper:13_05
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    File URL: https://motu-www.motu.org.nz/wpapers/13_05.pdf
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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).
    2. Bojosi Morule & Konstantin Makrelov, 2019. "The effectiveness of the Employment Tax Incentive August 2019," Occasional Bulletin of Economic Notes 9481, South African Reserve Bank.

    More about this item

    Keywords

    wage subsidy; active labour market policies; propensity matching;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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