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November 17, 2010

Seminar

Job Creation Subsidies and Employment. Empirical Evidence for Germany
Berlin Network of Labour Market Researchers (BeNA)

Date

November 17, 2010
18:30 - 20:00

Location

Humboldt-Universität zu Berlin
Room 125
Spandauer Str. 1
10178 Berlin

Speakers

Claudia Steinwender (LSE)
Claudia Steinwender (LSE) will present "Job Creation Subsidies and Employment. Empirical Evidence for Germany".
Abstract: Many European countries use job creation programmes in order to raise employment, especially in economically disadvantaged regions. Despite the amount of resources spent on these programmes, rigorous empirical evaluation about their causal effect is scarce. This is mainly due to difficulties in identication, as eligibility for job creation subsidies at the regional level is endogenous. This paper exploits an exogenous change to the rules determining regional subsidy eligibility in Germany to construct valid counterfactuals. The empirical evaluation is not able to find an impact of the availability of job creation subsidies on regional employment. This result is robust to different specifications and research designs. My findings can be interpreted in the context of a search and matching framework, where increased job creations due to hiring subsidies induce more worker quits; and under certain circumstances offsets the positive effect on employment.
Seminarplan für das Wintersemester
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