A Caltech Library Service

Experimental Estimates of the Impact of Wage Subsidies

Dubin, Jeffrey A. and Rivers, Douglas (1991) Experimental Estimates of the Impact of Wage Subsidies. Social Science Working Paper, 778. California Institute of Technology , Pasadena, CA. (Unpublished)

[img] PDF (sswp 778 - Oct. 1991) - Submitted Version
See Usage Policy.


Use this Persistent URL to link to this item:


The effects of a wage subsidy program on the duration of insured unemployment are investigated using experimental data. Participation in the experiment was voluntary and about one third of the subjects refused to take the subsidy voucher offered to them. Because subsidies appear to have stigmatic effects which tend to lower participation rates by high-skilled workers, experimental participants have longer average durations of unemployment than non-participants. However, correcting for self-selection, we find that wage subsidies can substantially increase a participant's probability of reemployment. Subsidies are also compared to a search bonus proposal which is also cost effective, but, due to differences in participation patterns, has rather different effects.

Item Type:Report or Paper (Working Paper)
Related URLs:
URLURL TypeDescription ItemPublished Version
Additional Information:We would like to thank the Associate Editor and referees for helpful comments. Research support was provided by the Productive Employment Foundation. We are grateful to Allen V.C. Davis for his support and encouragement. Published as Dubin, Jeffrey A., and Douglas Rivers. "Experimental estimates of the impact of wage subsidies." Journal of Econometrics 56, no. 1-2 (1993): 219-242.
Group:Social Science Working Papers
Funding AgencyGrant Number
Productive Employment FoundationUNSPECIFIED
Series Name:Social Science Working Paper
Issue or Number:778
Record Number:CaltechAUTHORS:20170830-141305574
Persistent URL:
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:80979
Deposited By: Jacquelyn Bussone
Deposited On:30 Aug 2017 21:22
Last Modified:03 Oct 2019 18:37

Repository Staff Only: item control page