Do Hiring Subsidies Reduce Unemployment Among the Elderly? Evidence from Two Natural Experiments

36 Pages Posted: 18 Jan 2007 Last revised: 26 Aug 2008

See all articles by Bernhard Boockmann

Bernhard Boockmann

ZEW – Leibniz Centre for European Economic Research; Institute for Applied Economic Research (IAW); IZA Institute of Labor Economics

Andreas Ammermueller

Federal Ministry of Labour and Social Affairs

Thomas Zwick

University of Würzburg - Business Administration & Economics; Centre for European Economic Research (ZEW); Maastricht University - Research Centre for Education and the Labour Market (ROA)

Michael F. Maier

Center for European Economic Research (ZEW)

Date Written: 2007

Abstract

We estimate the effects of hiring subsidies for older workers on transitions from unemployment to employment in Germany. Using a natural experiment, our first set of estimates is based on a legal change extending the group of eligible unemployed persons. A subsequent legal change in the opposite direction is used to validate these results. Our data cover the population of unemployed jobseekers in Germany and was specifically made available for our purposes from administrative data. Consistent support for an employment effect of hiring subsidies can only be found for women in East Germany. Concerning other population groups, firms' hiring behavior is hardly influenced by the program and hiring subsidies mainly lead to deadweight effects.

Keywords: Hiring subsidies, older workers, evaluation, natural experiments

JEL Classification: J64, H24, C31

Suggested Citation

Boockmann, Bernhard and Ammermueller, Andreas and Zwick, Thomas and Maier, Michael F., Do Hiring Subsidies Reduce Unemployment Among the Elderly? Evidence from Two Natural Experiments (2007). ZEW - Centre for European Economic Research Discussion Paper No. 07-001. Available at SSRN: https://ssrn.com/abstract=957999 or http://dx.doi.org/10.2139/ssrn.957999

Bernhard Boockmann (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany
+621 1235 156 (Phone)
+621 1235 225 (Fax)

Institute for Applied Economic Research (IAW) ( email )

Ob dem Himmelreich 1
Tubingen, 72074
Germany

HOME PAGE: http://www.iaw.edu

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Andreas Ammermueller

Federal Ministry of Labour and Social Affairs ( email )

Berlin, 11017
Germany

Thomas Zwick

University of Würzburg - Business Administration & Economics ( email )

Sanderring 2
Wuerzburg, D-97070
Germany

Centre for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

Maastricht University - Research Centre for Education and the Labour Market (ROA) ( email )

P.O. Box 616
Maastricht, MD6200
Netherlands

Michael F. Maier

Center for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
214
Abstract Views
1,411
rank
140,624
PlumX Metrics