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Wage Subsidy Programs: A Primer

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  • Jeff Borland

    (University of Melbourne)

Abstract

This article provides an introduction to wage subsidy programs for jobseekers facing barriers to employment. First, the features of a wage subsidy program are described, and a brief history of this type of program in Australia is presented. Second, Australian and international evidence on the impact of wage subsidy programs is reviewed. Third, the main aspects of the design of wage subsidy programs are considered.

Suggested Citation

  • Jeff Borland, 2016. "Wage Subsidy Programs: A Primer," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 19(3), pages 131-144.
    • Handle: RePEc:ozl:journl:v:19:y:2016:i:3:p:131-144
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    References listed on IDEAS

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    2. Martin, John P. & Grubb, David, 2001. "What works and for whom: a review of OECD countries' experiences with active labour market policies," Working Paper Series 2001:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    3. Brian Bell & Richard Blundell & John Reenen, 1999. "Getting the Unemployed Back to Work: The Role of Targeted Wage Subsidies," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 6(3), pages 339-360, August.
    4. Schünemann Benjamin & Lechner Michael & Wunsch Conny, 2015. "Do Long-Term Unemployed Workers Benefit from Targeted Wage Subsidies?," German Economic Review, De Gruyter, vol. 16(1), pages 43-64, February.
    5. Kenneth A. Couch & Douglas J. Besharov & David Neumark, 2013. "Spurring Job Creation in Response to Severe Recessions: Reconsidering Hiring Credits," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 32(1), pages 142-171, January.
    6. Joachim Wolff & Gesine Stephan, 2013. "Subsidized work before and after the German Hartz reforms: design of major schemes, evaluation results and lessons learnt," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-24, December.
    7. Richardson, James, 1998. "Do wage subsidies enhance employability? Evidence from Australian youth," LSE Research Online Documents on Economics 20280, London School of Economics and Political Science, LSE Library.
    8. Elizabeth Webster, 1998. "Microeconomic Evaluations of Australian Labour Market Programs," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 31(2), pages 189-201, June.
    9. Peter Davidson & Peter Whiteford, 2012. "An Overview of Australia's System of Income and Employment Assistance for the Unemployed," OECD Social, Employment and Migration Working Papers 129, OECD Publishing.
    10. David Neumark & Diego Grijalva, 2013. "The Employment Effects of State Hiring Credits During and After the Great Recession," NBER Working Papers 18928, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Rebecca Cassells & Alan Duncan, 2020. "JobKeeper: The efficacy of Australia’s first short-time wage subsidy," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 23(2), pages 99-128.

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    More about this item

    Keywords

    Wage subsidy; unemployment; labour market program;
    All these keywords.

    JEL classification:

    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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