TY  - JOUR
AB  - Purpose– The purpose of this paper is to theoretically and empirically investigate the relative effects of wage subsidies and further vocational training on employment prospects.Design/methodology/approach– The paper adopts a theoretical approach that discusses the effects of two major active labor market programs; empirical test using a large administrative data set from Germany and statistical matching techniques.Findings– Previously subsidized individuals and trained individuals who found a job immediately afterwards have the same employment rates.Practical implications– Firms value training on a subsidized job as much as formal training programs.Originality/value– The paper presents a model that draws attention to the role of hiring decisions of firms and to the formation of human capital by training programs and by training on subsidized jobs; estimation of relative average treatment effects on the differentially treated, i.e. participants of two active labor market programs; and comparisons not only of all unemployed but also of unemployed persons taking‐up or keeping a job after program end.
VL  - 33
IS  - 2
SN  - 0143-7720
DO  - 10.1108/01437721211225417
UR  - https://doi.org/10.1108/01437721211225417
AU  - Neubäumer Renate
PY  - 2012
Y1  - 2012/01/01
TI  - Bringing the unemployed back to work in Germany: training programs or wage subsidies?
T2  - International Journal of Manpower
PB  - Emerald Group Publishing Limited
SP  - 159
EP  - 177
Y2  - 2024/04/25
ER  -