TY  - RPRT
        AU  - Huttunen, Kristiina
AU  - Pirttilä, Jukka
AU  - Uusitalo, Roope
        TI  - The Employment Effects of Low-Wage Subsidies
        PY  - 2010/May/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 4931
        UR  - https://www.iza.org/index.php/publications/dp4931
        AB  - Low-wage subsidies are often proposed as a solution to the unemployment problem among the low skilled. Yet the empirical evidence on the effects of low-wage subsidies is surprisingly scarce. This paper examines the employment effects of a Finnish payroll tax subsidy scheme, which is targeted at the employers of older, full-time, low-wage workers. The system's clear eligibility criteria open up an opportunity for a reliable estimation of the causal impacts of the subsidy, using a difference-in-difference-in-differences approach. Our results indicate that the subsidy system had no effects on the employment rate. However, it appears to have increased the probability of part-time workers obtaining full-time employment.
        KW  - employment
KW  - social security contributions
KW  - low-wage subsidies
        ER  -