Knabe, Andreas; Schöb, Ronnie; Weimann, Joachim - 2021
In this paper, we attempt to renew the interest in marginal employment subsidies. Such subsidies are paid only for a … general wage subsidies for all workers. If the hiring of a new employee also entails subsidizing an incumbent worker (double … standard critique of marginal employment subsidies - can be avoided. This additional subsidy reduces the incentive to crowd out …