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Wages, employment and tenure of temporarily subsidized workers: Does the industry matter? (Löhne, Beschäftigung und Betriebszugehörigkeitsdauer von zeitweise subventionierten Arbeitnehmern: Spielt die Industrie eine Rolle?)

Author

Listed:
  • Stephan, Gesine

    (Institute for Employment Research (IAB), Nuremberg, Germany)

Abstract

"This paper explores whether wage, employment and tenure outcomes of workers taking up a job subsidized by the German Federal Employment Agency differ by industry. The analysis utilizes administrative data and statistical matching techniques; it covers an observation period of 3.5 years. First, we conduct a within-industry comparison of temporarily subsidized and otherwise similar unsubsidized workers. The findings show for most industries that subsidized workers had similar short-run wages, but fared significantly better in the longer run. Second, we compare labor market outcomes of subsidized workers within each industry with those of similar subsidized workers in other industries. The main result is that cumulated wages of workers would not have differed significantly, if they had been hired in another industry instead. However, we find significant differences in short-term wages, employment and tenure outcomes across industries. Finally, from a fiscal point of view it seems more advantageous to subsidize workers hired in industries that are less subject to demand fluctuations." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Stephan, Gesine, 2010. "Wages, employment and tenure of temporarily subsidized workers: Does the industry matter? (Löhne, Beschäftigung und Betriebszugehörigkeitsdauer von zeitweise subventionierten Arbeitnehmern: Spielt die," IAB-Discussion Paper 201012, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:201012
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    References listed on IDEAS

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    1. Heinze, Anja & Pfeiffer, Friedhelm & Spermann, Alexander & Winterhager, Henrik & Wuppermann, Amelie, 2005. "Vermittlungsgutscheine: Zwischenergebnisse der Begleitforschung 2004 : Teil 1: Datenstruktur und deskriptive Analysen," IAB-Forschungsbericht 200501, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    2. Bernhard Boockmann & Susanne Steffes, 2010. "Workers, Firms, or Institutions: What Determines Job Duration for Male Employees in Germany?," ILR Review, Cornell University, ILR School, vol. 64(1), pages 109-127, October.
    3. Fredriksson, Peter & Johansson, Per, 2008. "Dynamic Treatment Assignment," Journal of Business & Economic Statistics, American Statistical Association, vol. 26, pages 435-445.
    4. Heinze, Anja & Pfeiffer, Friedhelm & Spermann, Alexander & Winterhager, Henrik, 2005. "Vermittlungsgutscheine: Zwischenergebnisse der Begleitforschung 2004 : Teil 3: Mikroökonomische Wirkungsanalyse," IAB-Forschungsbericht 200503, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Christian, GOEBEL, 2006. "The effect of temporary employment subsidies on employment duration," Discussion Papers (ECON - Département des Sciences Economiques) 2006035, Université catholique de Louvain, Département des Sciences Economiques.
    6. Pfeiffer, Friedhelm & Winterhager, Henrik, 2005. "Vermittlungsgutscheine: Zwischenergebnisse der Begleitforschung 2004 : Teil 5: Kosten-Nutzen-Analyse," IAB-Forschungsbericht 200505, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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    Cited by:

    1. 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.

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    More about this item

    Keywords

    Bundesrepublik Deutschland ; Beschäftigungsdauer ; Betriebszugehörigkeit ; Dauer ; Eingliederungszuschuss ; Erfolgskontrolle ; Lohnhöhe ; Wirtschaftszweige ; 2003-2006;
    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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