%0 Report %A Bernhard, Sarah %A Gartner, Hermann %A Stephan, Gesine %T Wage Subsidies for Needy Job-Seekers and Their Effect on Individual Labour Market Outcomes after the German Reforms %D 2008 %8 2008 Oct %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 3772 %U https://www.iza.org/index.php/publications/dp3772 %X Our paper estimates the average effect of wage subsidies – paid to employers for a limited period of time – on the labour market prospects of needy job-seekers without access to insurance-paid 'unemployment benefit I'. The results show that wage subsidies had large and significant favourable effects: 20 months after taking up a subsidised job, the share of persons in regular employment is nearly 40 percentage points higher across participants. On the whole, groups with particular placement difficulties benefit comparatively more from subsidisation. %K wage subsidies %K unemployment benefits II for needy job-seekers %K evaluation of active labour market programmes %K propensity score matching