Many countries support business start-ups to spur economic growth and reduce unemployment with different programmes … start-up subsidy for unemployed individuals in Germany using propensity score matching under the CIA. Having access to rich …

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 … distribution than statutory minimum wages. Combining a minimum wage with a wage subsidy, similar to the French minimum wage system …

-tax schedule, combined with sticky posted wages (i.e., the gross labor income minus payroll taxes divided by hours worked). Finally …