Artikel

Do wage subsidies for disabled workers reduce their non-employment? Evidence from the Danish Flexjob scheme

We evaluate the potential of wage subsidy programs for reducing non-employment of the disabled by exploiting a reform of the Danish Flexjob scheme targeted towards employing the long-term (partially) disabled. Firms received a salary reimbursement for all employees granted a Flexjob. We examine whether a change from full to partial reimbursement to governmental units affected the share of Flexjobs allocated to retained (insiders) versus non-employed hirees (outsiders). After the reform, the composition of hires changed substantially in favor of insiders, both in absolute and relative terms. A reduction in subsidies thus leads to a decrease in the hiring of the non-employed disabled.

Language
Englisch

Bibliographic citation
Journal: IZA Journal of Labor Policy ; ISSN: 2193-9004 ; Volume: 4 ; Year: 2015 ; Pages: 1-26 ; Heidelberg: Springer

Classification
Wirtschaft
Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination
Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
Subject
Disability
Wage subsidies
Non-employment
Difference-in-differences

Event
Geistige Schöpfung
(who)
Gupta, Nabanita Datta
Larsen, Mona
Thomsen, Lars
Event
Veröffentlichung
(who)
Springer
(where)
Heidelberg
(when)
2015

DOI
doi:10.1186/s40173-015-0036-7
Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Artikel

Associated

  • Gupta, Nabanita Datta
  • Larsen, Mona
  • Thomsen, Lars
  • Springer

Time of origin

  • 2015

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