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| Author: | Kangasharju, A. |
| Title: | Do wage subsidies increase employment in subsidized firms |
| Journal: | Economica
2007 : FEB, VOL. 74:293, p. 51-67 |
| Index terms: | employment pay subsidies |
| Language: | eng |
| Abstract: | This article examines whether subsidized jobs have contributed to employment in subsidized firms or have merely substituted for non-subsidized ones. It uses unbalanced data-set of some 31 000 firms that are followed annually between 1995 and 2002. The results suggest that wage subsidies stimulate employment, and that the magnitude of the effect is as aimed. It also finds that subsidies have no sizeable effects on non-subsidized firms of the industry or the geographical are in question. |
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