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Title:The effectiveness of targeted wage subsidies for hard-to-place workers PDF Logo
Authors:Jaenichen, Ursula
Stephan, Gesine
Issue Date:2007
Series/Report no.:IAB discussion paper 2007,16
Abstract:Targeted wage subsidies paid to employers are an important element of active labour market policies in Germany. This paper uses propensity score matching to investigate their effect on subsidised hard-to-place workers. In a first scenario, we estimate the average treatment effect of a subsidy on previously unemployed individuals. A second scenario analyses the effects of a subsidy on employment probabilities conditional on takingup employment. The third scenario investigates the additional effect of a subsidy on individuals, who have participated in a short-term training measure beforehand. Summing up and in line with the literature, the results show that subsidies have a favourable effect on the employment prospects of participants.
Subjects:Targeted wage subsidies
evaluation of labour market programmes
propensity score matching
JEL:J68
J64
J65
Document Type:Working Paper
Appears in Collections:IAB-Discussion Paper, Institut für Arbeitsmarkt- und Berufsforschung (IAB)

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