%0 Report
        %A Huttunen, Kristiina
%A Pirttilä, Jukka
%A Uusitalo, Roope
        %T The Employment Effects of Low-Wage Subsidies
        %D 2010
        %8 2010 May
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 4931
        %U https://www.iza.org/publications/dp4931
        %X 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.
        %K employment
%K social security contributions
%K low-wage subsidies