Kiel Working Papers, Kiel Institute for World Economics
No 1327:
Einstellungsgutscheine: Konkrete Ausgestaltung für Deutschland
Alfred Boss, Alessio J. G. Brown, Christian Merkl and Dennis Snower
Abstract: This paper describes the practical implementation of
hiring vouchers in Germany (Kiel Working Paper 1302 "Comparing the
Effectiveness of Employment Subsidies" by Alessio Brown, Christian Merkl
and Dennis Snower). According to our proposal employers receive vouchers
for hiring longterm unemployed, low-ability workers. Thereby, labour costs
are reduced for a limited period of time. The size of the vouchers
increases with the duration of unemployment as well as with the
qualification and decreases with the subsequent employment duration. We
exemplify the concept for self-financing hiring vouchers for a broad range
of unemployment durations and qualifications. We develop a simple formula
to calculate the size of the voucher depending on the new wage, the
duration of unemployment and the subsequent employment duration.
17 pages, June 2007
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