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Bernhard, Sarah
Gartner, Hermann
Stephan, Gesine
Year of Publication: 
Series/Report no.: 
IZA discussion papers 3772
Our paper estimates the average effect of wage subsidies - paid to employers for a limited period of time - on the labour market prospects of needy job-seekers without access to insurance-paid 'unemployment benefit I'. The results show that wage subsidies had large and significant favourable effects: 20 months after taking up a subsidised job, the share of persons in regular employment is nearly 40 percentage points higher across participants. On the whole, groups with particular placement difficulties benefit comparatively more from subsidisation.
Wage subsidies
unemployment benefits II for needy job-seekers
evaluation of active labour market programmes
propensity score matching
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Working Paper

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