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Which firms use targeted wage subsidies? An empirical note for Germany
[Welche Betriebe nutzen Eingliederungszuschüsse in Deutschland?]

Author

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  • Lutz Bellmann

    (IAB)

  • Gesine Stephan

    (IAB)

Abstract

In Germany, temporary wage subsidies (Eingliederungszuschüsse) can be granted to employers if they hire workers with obstacles to placement. Based on the 2003, 2005, 2007 and 2009 waves of the IAB Establishment Panel, this paper looks into the following questions: Is there a connection between the use of targeted wage subsidies and certain structural characteristics of the establishment, such as establishment size, industry and employment structure? Is the labor turnover of establishments that make use of wage subsidies higher than that of similar establishments that do not? Do establishments that utilize targeted wage subsidies also make use of other active labor market programs (e.g. work opportunities) to a disproportionate degree? On the whole, the empirical findings confirm that establishment structures are important for the decisions of firms to make use of targeted wage subsidies.

Suggested Citation

  • Lutz Bellmann & Gesine Stephan, 2014. "Which firms use targeted wage subsidies? An empirical note for Germany [Welche Betriebe nutzen Eingliederungszuschüsse in Deutschland?]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 47(1), pages 165-175, March.
    • Handle: RePEc:spr:jlabrs:v:47:y:2014:i:1:d:10.1007_s12651-014-0157-2
    DOI: 10.1007/s12651-014-0157-2
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    References listed on IDEAS

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    1. 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.
    2. Ursula Jaenichen & Gesine Stephan, 2011. "The effectiveness of targeted wage subsidies for hard-to-place workers," Applied Economics, Taylor & Francis Journals, vol. 43(10), pages 1209-1225.
    3. Bernhard Boockmann & Thomas Zwick & Andreas Ammermüller & Michael Maier, 2012. "Do Hiring Subsidies Reduce Unemployment Among Older Workers? Evidence From Natural Experiments," Journal of the European Economic Association, European Economic Association, vol. 10(4), pages 735-764, August.
    4. Stephan, Gesine, 2010. "Wages, Employment and Tenure of Temporarily Subsidized Workers: Does the Industry Matter?," IZA Discussion Papers 5078, Institute of Labor Economics (IZA).
    5. Knut Gerlach & David Levine & Gesine Stephan & Olaf Struck, 2008. "Fairness and the employment contract: North American regions versus Germany," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 32(3), pages 421-439, May.
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    Cited by:

    1. Efstathiou, Konstantinos & Mathä, Thomas Y. & Veiga, Cindy & Wintr, Ladislav, 2019. "Active labour market policy use in Luxembourg: evidence from a firm survey," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 53(1), pages 1-12.
    2. Mattsson, Pontus, 2019. "The impact of labour subsidies on total factor productivity and profit per employee," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 325-341.
    3. Moczall, Andreas, 2015. "The effect of hiring subsidies on regular wages," IAB-Discussion Paper 201501, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Moczall, Andreas, 2015. "The effect of hiring subsidies on regular wages," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113225, Verein für Socialpolitik / German Economic Association.

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