Wage Subsidies for Microenterprises

The Employment Effects of Low-Wage Subsidies

The Employment Effects of Low-Wage Subsidies Low-wage subsidies are often proposed as a solution to the unemployment problem among the low skilled. Yet the empirical evidence on the effects of low-wage subsidies is surprisingly scarce. This paper examines the employment effects of a Finnish payroll tax subsidy scheme, which is targeted at the employers of older, full-time, low-wage workers. The...

Do Earnings Subsidies Affect Job Choice? The Impact of SSP Subsidies on Wage Growth

It is widely acknowledged that tax and transfer policies can a¤ect employment. This paper explores a di¤erent potential impact of transfer policy by asking whether subsidies also a¤ect job duration and wage growth. We provide an analytical framework that identi…es causal links between earnings subsidies, job turnover, and wage growth. This framework highlights the importance of the form of the ...

Wage Subsidies and International Trade: When Does Policy Coordination Pay?

National labour market institutions interact across national boundaries when product markets are global. Labour market policies can thus entail spill-overs, which suggest that there are benefits from international policy coordination. This paper studies the effects of wage subsidies in an international duopoly model with unionized labour markets. The authors document both positive and negative ...

Recruiting long-term unemployed: lessons from wage subsidies

Do Earnings Subsidies A¤ect Job Choice? The Impact of SSP Subsidies on Job Turnover and Wage Growth

It is widely acknowledged that tax and transfer policies can a¤ect employment. This paper explores a di¤erent potential impact of transfer policy by asking whether subsidies also a¤ect job duration and wage growth. We provide an analytical framework that identi…es causal links between earnings subsidies, job turnover, and wage growth. This framework highlights the importance of the form of the ...