The effectiveness of public funds in increasing public employment has long been a question on public and labor economists' minds. In most federal countries local governments employ large fractions of the working population, meaning that a tool for stimulating local public employment can...

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...