factor prices and on environmental outcomes. We model an output subsidy, a capital subsidy, relief from environmental … regulation, and a direct cash subsidy. In exchange for receiving subsidies, firms must agree to a minimum level of labor … employment. Each type of subsidy and the employment constraint create both output effects and substitution effects on input …

factor prices and on environmental outcomes. We model an output subsidy, a capital subsidy, relief from environmental … regulation, and a direct cash subsidy. In exchange for receiving subsidies, firms must agree to a minimum level of labor … employment. Each type of subsidy and the employment constraint create both output effects and substitution effects on input …

estimations. These candidates differed experimentally in their eligibility for a hiring subsidy targeted at the unemployed aged 58 … or over. Our results indicate that the subsidy has a negative effect on their hiring outcomes. This adverse effect is …