The paper evaluates the treatment effects of the wage subsidy program in Hamburg with propensity score matching as well as linear regressions. It is found that the estimated treatment effects differ only slightly between both methods. When analysing heterogeneous treatment effects, however,...

The aim of the wage subsidy program in Hamburg is to encourage the creation of low wage jobs for unemployed persons with poor labor market opportunities. If a firm hires an unemployed job seeker, both the employer and the employee each receive a monthly wage subsidy of 250 Euros in the first ten...

This paper explores the effects of a major reform of unemployment benefits in Germany on the labor market outcomes of individuals with some health impairment. The reform induced a substantial reduction in the potential duration of regular unemployment benefits for older workers. This work...