@techreport{Connolly2004Earnings,
abstract = {It is widely acknowledged that earnings subsidies promote employment by increasing
rewards to labor market activity. This paper asks whether subsidies also affect job duration
and wage growth. We provide an analytical framework that identifies causal links between
earnings subsidies, job turnover, and wage growth. This framework highlights the importance
of the form of the subsidy on the decision about the type of job to accept and, hence, its
potential effect on within-job wage growth. The subsidy is predicted to increase job turnover
and to affect between-job wage growth by affecting reservation wages. We use this
framework to analyze the effects of the Canadian Self-Sufficiency Project (SSP). Consistent
with the theory, we find that experimentals have shorter job duration and experience faster
within-job and between-job wage growth than experimentals who continued to be eligible only
for Income Assistance.},
author = {Helen Connolly and Peter Gottschalk},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {J38; J23; 330; wage subsidy; job choice; Lohnsubvention; Arbeitsangebot; Arbeitsmobilit\"{a}t; Lohn; Sch\"{a}tzung; Vereinigte Staaten; EITC},
language = {eng},
number = {1322},
title = {Do Earnings Subsidies Affect Job Choice?},
type = {IZA Discussion paper series},
url = {http://hdl.handle.net/10419/20590},
year = {2004}
}
