Marginal Employment Subsidies
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Author | : Organisation for Economic Co-operation and Development |
Publisher | : Organisation for Economic Co-operation and Development ; [Washington, D.C. : OECD Publications and Information Center |
Total Pages | : 108 |
Release | : 1982 |
Genre | : Business & Economics |
ISBN | : |
Author | : Mark Montgomery |
Publisher | : |
Total Pages | : 698 |
Release | : 1982 |
Genre | : Employment subsidies |
ISBN | : |
Author | : Carl Chiarella |
Publisher | : |
Total Pages | : 52 |
Release | : 1982 |
Genre | : Employment stabilization |
ISBN | : |
Author | : Commission of the European Communities. Directorate-General for Economic and Financial Affairs |
Publisher | : |
Total Pages | : |
Release | : 1982 |
Genre | : |
ISBN | : |
Author | : Organisation for Economic Co-operation and Development. Manpower and Social Affairs Committee |
Publisher | : |
Total Pages | : 75 |
Release | : 1982 |
Genre | : |
ISBN | : |
Author | : |
Publisher | : |
Total Pages | : 97 |
Release | : 1982 |
Genre | : |
ISBN | : |
Author | : |
Publisher | : |
Total Pages | : 97 |
Release | : 1982 |
Genre | : |
ISBN | : |
Author | : Andreas Knabe |
Publisher | : |
Total Pages | : 136 |
Release | : 2008 |
Genre | : Employment subsidies |
ISBN | : |
Author | : Tinker Marks |
Publisher | : |
Total Pages | : |
Release | : 1985 |
Genre | : Employment (Economic theory) |
ISBN | : |
Author | : Andreas Knabe |
Publisher | : |
Total Pages | : 0 |
Release | : 2010 |
Genre | : |
ISBN | : |
In this paper, we attempt to renew the interest in marginal employment subsidies. Such subsidies are paid only for a firm's additional employment exceeding some reference level and create larger employment stimuli at lower fiscal costs than general wage subsidies for all workers. If the hiring of a new employee also entails subsidizing an incumbent worker (double marginal subsidization), the replacement of regular paid workers by outsourcing employment to newly established firms - a standard critique of marginal employment subsidies - can be avoided. This additional subsidy reduces the incentive to crowd out regular employment and results in even larger employment effects. Applying the subsidy scheme to the low-skill labor market in Germany, we show that employment can be substantially increased without imposing additional fiscal burden.