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Do Long-term Unemployed Workers Benefit from Targeted Wage Subsidies?

Lechner, Michael and Schünemann, Benjamin and Wunsch, Conny. (2013) Do Long-term Unemployed Workers Benefit from Targeted Wage Subsidies? WWZ Discussion Papers, 2013 (14).

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Official URL: https://edoc.unibas.ch/61342/

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Abstract

We evaluate a wage subsidy program that is targeted at long-term unemployed workers in Germany. We use an alternative identification procedure compared to empirical studies con­ducted so far. Exploiting the particular program regulations and large administrative data we estimate the impact of program availability using a regression discontinuity framework. Our results suggest no significant impact of the availability of the subsidy on labor market out­comes of the target group. Even though our analysis lacks some statistical power, our findings do not support the substantial positive effects obtained from matching studies. As our ap­proach does not require observability of all drivers of selection, previous empirical studies justifying government expenditures on wage subsidies based on matching methods should be reconsidered.
Faculties and Departments:06 Faculty of Business and Economics > Departement Wirtschaftswissenschaften > Professuren Wirtschaftswissenschaften > Arbeitsmarktökonomie (Wunsch)
12 Special Collections > WWZ Publications > WWZ Discussion Papers and Working Papers
UniBasel Contributors:Wunsch, Conny
Item Type:Working Paper
Publisher:WWZ, University of Basel
Number of Pages:33
Note:Publication type according to Uni Basel Research Database: Discussion paper / Internet publication
Language:English
Identification Number:
  • handle: RePEc:bsl:wpaper:2013/14
Last Modified:09 Mar 2018 10:53
Deposited On:08 Mar 2018 08:11

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