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Author:Krug, G.
Title:In-work benefits for low-wage jobs: Can additional income reduce employment stability?
Journal:European sociological review
2009 : AUG, VOL. 25:4, p. 459-474
Index terms:labour markets
employment
work
low incomes
subsidies
pay
Germany
Language:eng
Abstract:It is argued in the paper that although government subsidies increase overall wages, employees interpret them as a signal of employers being unwilling to abide by the norm of reciprocity. This leads to negative side-effects on employment stability (herein as: empl-stby.), counteracting the positive effects of additional income on empl-stby. This article tests these hypotheses using a survey of in-work benefit recipients, with non-recipients as a comparison group. The propensity score matching method is applied to eliminate all compositional differences btw. benefit recipients and non-recipients except for the source of their income. It is shown that in-work benefits lead to perceived reciprocity violations etc.
SCIMA record nr: 274475
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