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Subsidized employment study, shows increased wages, and social impacts

JP Hochbaum

JP Hochbaum

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New study out showing subsidized employment programs help people gain employment and increase their future earnings. There are also a wide range of social impacts as well:

"Subsidized employment programs have successfully raised earnings and employment. This effect is not universal across programs or target populations, but numerous rigorously evaluated interventions offer clear evidence that subsidized employment programs can achieve positive labor market outcomes. Some of these effects derive from the compensation and employment provided by the subsidized job itself, but there also is evidence that well-designed programs can improve outcomes in the competitive labor market after a subsidized job has ended.

• Subsidized employment programs have benefits beyond the labor market. Fundamentally, subsidized jobs and paid work experience programs provide a source of both income and work experience. A number of experimentally-evaluated subsidized employment programs have in turn reduced family public benefit receipt, raised school outcomes among the children of workers, boosted workers’ school completion, lowered criminal justice system involvement among both workers and their children, improved psychological well-being, and reduced longer-term poverty; there may be additional effects for some populations, such as increases in child support payments and improved health, which are being explored through ongoing experiments"

https://www.law.georgetown.edu/acad...r.cfm?csModule=security/getfile&PageID=269877
 
JP Hochbaum said:
New study out showing subsidized employment programs help people gain employment and increase their future earnings. There are also a wide range of social impacts as well:

"Subsidized employment programs have successfully raised earnings and employment. This effect is not universal across programs or target populations, but numerous rigorously evaluated interventions offer clear evidence that subsidized employment programs can achieve positive labor market outcomes. Some of these effects derive from the compensation and employment provided by the subsidized job itself, but there also is evidence that well-designed programs can improve outcomes in the competitive labor market after a subsidized job has ended.

• Subsidized employment programs have benefits beyond the labor market. Fundamentally, subsidized jobs and paid work experience programs provide a source of both income and work experience. A number of experimentally-evaluated subsidized employment programs have in turn reduced family public benefit receipt, raised school outcomes among the children of workers, boosted workers’ school completion, lowered criminal justice system involvement among both workers and their children, improved psychological well-being, and reduced longer-term poverty; there may be additional effects for some populations, such as increases in child support payments and improved health, which are being explored through ongoing experiments"

https://www.law.georgetown.edu/acad...r.cfm?csModule=security/getfile&PageID=269877
Click to expand...

I did not read this study, but have seen in studies of the German programs how important the structure of the subsidy is. Very often the good intent only wastes money. This has led to a rethinking of such programs and a most have been discontinued.

One situation in which such programs do work is in recessions. Subsidizing jobs of skilled labor so that they are not fired gives the economy a number of advantages. This type of program should probably be researched more and eventually used as a standard short term tool.
 
Hmm...

The goal of this paper is to promote subsidized employment policies and programs that are likely to increase quality opportunities for individuals with serious or multiple barriers to employment, during both economic expansions and contractions.
Click to expand...

Imagine that - a "study" that reaches its predetermined conclusion. ;)
 
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