Do Hiring Subsidies Reduce Unemployment Among the Elderly? Evidence From Two Natural Experiments

Boockmann, Bernhard ; Zwick, Thomas ; Ammermüller, Andreas ; Maier, Michael

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URN: urn:nbn:de:bsz:180-madoc-14814
Document Type: Working paper
Year of publication: 2007
The title of a journal, publication series: None
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: H24 C31 J64 ,
Subject headings (SWD): Lohnkostenzuschuss , Älterer Arbeitnehmer , Experiment , Arbeitsmarktpolitik , Deutschland
Keywords (English): Hiring subsidies , older workers , evaluation , natural experiments
Abstract: We estimate the effects of hiring subsidies for older workers on transitions from unemployment to employment in Germany. Using a natural experiment, our first set of estimates is based on a legal change extending the group of eligible unemployed persons. A subsequent legal change in the opposite direction is used to validate these results. Our data cover the population of unemployed jobseekers in Germany and was specifically made available for our purposes from administrative data. Consistent support for an employment effect of hiring subsidies can only be found for women in East Germany. Concerning other population groups, firms' hiring behavior is hardly influenced by the program and hiring subsidies mainly lead to deadweight effects.
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