Employer search and employment subsidies

Title: Employer search and employment subsidies
Creator: Welters, Riccardo; Muysken, Joan
Relation: Applied Economics Vol. 38, Issue 12, p. 1435-1448
Publisher Link: http://dx.doi.org/10.1080/00036840500218745
Publisher: Routledge
Resource Type: journal article
Date: 2006
Description: In this paper insights into the literature on employment subsidy evaluation and that on employer search are merged to explore uncharted territory: the firm and job characteristics leading to deadweight loss in employment subsidy schemes. A model is developed which integrates various arguments found in the existing employer search literature. Using a survey of Dutch firms for 1999, the model predictions are confirmed. The richness of the data set enables one to construct some measures of deadweight loss which are new to the existing literature. It turns out that firms which experience low screening costs (large firms), firms that forego substantial production due to unfilled jobs (vacancies for full-time jobs) and firms operating in slack labour market conditions cause significantly more deadweight loss.
Subject: employment subsidy evaluation; Dutch firms; low screening costs; unfilled jobs
Identifier: http://hdl.handle.net/1959.13/26847
Identifier: uon:1157
Identifier: ISSN:0003-6846
Language: eng
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