We study the effects of a Danish wage subsidy program for highly educated workers on the performance of the persons and firms participating in the program. Using data on the population of program participants, both workers and firms, we find that the program had positive effects on employment and annual earnings during program participation while there are no positive effects for the years after program expiration. At the employer-level, we find statistically significant effects on the number of highly educated employees for both the period of program participation and the subsequent time period. For the total number of employees we only find positive effects during program participation while there are no statistically significant effects for value added, net income, return on assets, wages per employee and labor productivity.
- Wage subsidies
- Firm performance
- Program evaluation
Kaiser, U., & Kuhn, J. M. (2016). Worker-level and Firm-level Effects of a Wage Subsidy Program for Highly Educated Labor: Evidence from Denmark. Research Policy, 45(9), 1939-1943. https://doi.org/10.1016/j.respol.2016.05.008