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Employer wage subsidies and wages in Germany : some evidence from individual data

Author

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  • Stephan, Gesine

    (Institute for Employment Research (IAB), Nuremberg, Germany ; Universität Erlangen-Nürnberg)

Abstract

"In Germany, targeted wage subsidies to employers are an important instrument of active labor market policy. This paper utilizes process generated data of the German Public Employment Service to compare the wages of individuals taking up a subsidized job with those of otherwise similar individuals who found an unsubsidized job. The results indicate that subsidized jobs are not associated with gains or losses regarding daily wages, which might be contributed to wage setting within the German system of industrial relations. Nonetheless, because subsequent employment rates of subsidized persons are higher on average, we find a positive relationship between cumulated wages and subsidization." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Stephan, Gesine, 2009. "Employer wage subsidies and wages in Germany : some evidence from individual data," IAB-Discussion Paper 200909, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:200909
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. The impact of wage subsidies
      by Economic Logician in Economic Logic on 2009-08-04 19:53:00

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    Cited by:

    1. Braun, Sebastian & Friedl, Andreas & Groll, Dominik & Bachmann, Ronald & Giesecke, Matthias & Kramer, Anica & Paloyo, Alfredo & Sachs, Andreas, 2012. "Demografie und Wachstum: Die gesamtwirtschaftlichen Effekte einer höheren Erwerbstätigkeit Älterer. Gutachten im Auftrag der Initiative Neue Soziale Marktwirtschaft (INSM) GmbH. Endbericht," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 72614.
    2. Heyer, Gerd & Koch, Susanne & Stephan, Gesine & Wolff, Joachim, 2012. "Evaluation der aktiven Arbeitsmarktpolitik: Ein Sachstandsbericht für die Instrumentenreform 2011 (Evaluation of active labor market programs : a summary of recent results for the German program refor," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 45(1), pages 41-62.
    3. Alexander Mosthaf & Thorsten Schank & Claus Schnabel, 2014. "Low-wage employment versus unemployment: Which one provides better prospects for women?," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-17, December.
    4. Amlinger, Marc & Bispinck, Reinhard & Schulten, Thorsten, 2014. "Kein Mindestlohn für Langzeitarbeitslose?," WSI Reports 15, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    5. Ruppe, Kathi & Stephan, Gesine, 2009. "Förderung mit Eingliederungszuschüssen: Länger im Betrieb und gleicher Lohn (German wage subsidies: similar wages but longer job tenure)," IAB-Kurzbericht 200925, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

    More about this item

    Keywords

    Bundesrepublik Deutschland ; Auswirkungen ; Beschäftigungsdauer ; Eingliederungszuschuss ; Erfolgskontrolle ; Lohnhöhe ; Lohnkostenzuschuss ; arbeitsmarktpolitische Maßnahme ; 2000-2007;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy

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