affects employment, wage inequality, public expenditures, and aggregate income in the low-wage sector. It is shown that a … employment – depending on the subsidies’ incidence – and income effects. Wage subsidies also allow a more equal income …

in Germany, on employment, wage inequality, public expenditures, and incomes of poor households: 1) a statutory minimum … subsidies, the government can ensure more favorable employment and income effects. Combining a minimum wage with a wage subsidy …

the share of the outsourced workforce is not too large, this wage-moderation effect on domestic employment outweighs the … direct substitution effect so that domestic employment increases in unionized firms as outsourcing costs fall. This does not … for employment. However, except for low outsourcingactivities, the impact of these policy measures will become smaller as …