Knabe, Andreas; Schöb, Ronnie - 2008
affects employment, wage inequality, public expenditures, and aggregate income in the low-wage sector. It is shown that a … billion per year, while household income rises only by EUR 1.1 billion per year. Poor households, i.e. those eligible for … employment depending on the subsidies' incidence and income effects. Wage subsidies also allow a more equal income distribution …