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Do Earnings Subsidies Affect Job Choice?

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dc.creator Connolly, Helen
dc.creator Gottschalk, Peter
dc.date 2004
dc.date.accessioned 2013-10-16T07:11:17Z
dc.date.available 2013-10-16T07:11:17Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/20590
dc.identifier ppn:472871099
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/20590
dc.description It is widely acknowledged that earnings subsidies promote employment by increasing rewards to labor market activity. This paper asks whether subsidies also affect job duration and wage growth. We provide an analytical framework that identifies causal links between earnings subsidies, job turnover, and wage growth. This framework highlights the importance of the form of the subsidy on the decision about the type of job to accept and, hence, its potential effect on within-job wage growth. The subsidy is predicted to increase job turnover and to affect between-job wage growth by affecting reservation wages. We use this framework to analyze the effects of the Canadian Self-Sufficiency Project (SSP). Consistent with the theory, we find that experimentals have shorter job duration and experience faster within-job and between-job wage growth than experimentals who continued to be eligible only for Income Assistance.
dc.language eng
dc.relation IZA Discussion paper series 1322
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject J38
dc.subject J23
dc.subject ddc:330
dc.subject wage subsidy
dc.subject job choice
dc.subject Lohnsubvention
dc.subject Arbeitsangebot
dc.subject Arbeitsmobilität
dc.subject Lohn
dc.subject Schätzung
dc.subject Vereinigte Staaten
dc.subject EITC
dc.title Do Earnings Subsidies Affect Job Choice?
dc.type doc-type:workingPaper

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