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September 2018 The research seminar is held every Wednesday, 1.15 – 2.45 p.m., in room LG 0.423.
Exceptions: On 21/11/2018 and on 12/12/2018 the event is held in room 4.154!
Here you can download the Program NRSE 2018/2019 Fall.
17/10/2018

Room LG 0.423

Regina Riphahn (FAU Erlangen-Nürnberg):
“Employment Effects of Payroll Tax Subsidies”

 

This paper exploits several reforms of wage subsidies in the framework of the German Minijob program to investigate substitution and complementarity relationships between subsidized and non-subsidized labor demand. We apply an instrumental variables approach and use administrative data on German establishments for the period 1999-2014. Particularly in small establishments (0-9 employees), subsidized Minijob employment comprises large shares of the work force, on average over 40 percent. For these establishments, robust evidence shows that increasing the subsidization of Minijob employment crowds out non-subsidized employment. Our results imply that Minijob employment in 2014 may have eliminated more than 0.5 million unsubsidized employment relationships just in small establishments.