Low-wage subsidies are often proposed as a solution to the unemployment problem among the low skilled but the empirical evidence on their effects is still scarce. This paper examines the employment effects of a Finnish payroll tax subsidy scheme, which is targeted at the employers of older,...

Human capital investments increase lifetime income, but may involve substantial risk. In this paper we use a Finnish panel spanning 22years to nonparametrically predict the mean, the variance and the skew of the present value of lifetime income, and to calculate certainty equivalent lifetime...