Abstract We examine theoretically and empirically how wage subsidies and minimum wages interact regarding to employment opportunities, and how these interactive effects vary across different groups of workers. Assuming a neoclassical labor market and heterogeneous work, subsidized low-skilled...

Abstract We discuss a new scheme of subsidized jobs for unemployed people with extremely low job finding prospects. This scheme, referred to as Social Labour Market, primarily intends to promote their social inclusion. Research on public employment schemes has shown that it is of utmost...