Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
8948024 | Labour Economics | 2018 | 13 Pages |
Abstract
This paper studies how targeted wage subsidies affect the performance of the recruiting firms. Using Swedish administrative data from the period 1998-2008, we show that treated firms substantially outperform other recruiting firms after hiring through subsidies, despite identical pre-treatment performance levels and trends in a wide set of key dimensions. The pattern is less clear from 2007 onwards, after a reform removed the involvement of caseworkers from the subsidy approval process. Overall, our results suggest that targeted employment subsidies can have large positive effects on post-match outcomes of the hiring firms, at least if the policy environment allows for pre-screening by caseworkers.
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Authors
Stefano Lombardi, Oskar Nordström Skans, Johan Vikström,