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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 (Unpublished) https://resolver.caltech.edu/CaltechAUTHORS:20170830-141305574

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Abstract

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)
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http://resolver.caltech.edu/CaltechAUTHORS:20170906-084144252Related 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
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Productive Employment FoundationUNSPECIFIED
Series Name:Social Science Working Paper
Issue or Number:778
Record Number:CaltechAUTHORS:20170830-141305574
Persistent URL:https://resolver.caltech.edu/CaltechAUTHORS:20170830-141305574
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:80979
Collection:CaltechAUTHORS
Deposited By: Jacquelyn Bussone
Deposited On:30 Aug 2017 21:22
Last Modified:03 Oct 2019 18:37

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