Hiring subsidies, job creation and job destruction |
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| Authors: | Sagiri Kitao,Ay?egü l ?ahin,Joseph Song |
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| Affiliation: | a Department of Economics, University of Gothenburg, Sweden;b Uppsala Center for Fiscal Studies, Uppsala University, Sweden;c Department of Public Economics, University of Innsbruck, Austria |
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| Abstract: | We quantify the effects of hiring subsidies using the model of Mortensen and Pissarides (2003). The job creation effect can be large in a weak labor market. However, in the long-run, subsidies raise the wage and equilibrium unemployment. |
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| Keywords: | Social preferences Children Adolescents Distributional experiment Austria Sweden |
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