Brown, Alessio J. G.; Merkl, Christian; Snower, Dennis J. - 2007
This paper analyses theoretically and empirically how employment subsidies should be targeted. We contrast measures … efficiency (AWE). Thereby we can identify policies that (a) improve employment and welfare, (b) do not raise earnings inequality … German data. The calibration shows that hiring vouchers can be AWE, while low-wage subsidies do not satisfy AWE. Furthermore …