Tightness and stigma effects: evidence from wage subsidies

Welters, Riccardo, and Muysken, Joan (2006) Tightness and stigma effects: evidence from wage subsidies. In: Proceedings of the 8th Path to Full Employment Conference and the13th National Conference on Unemployment . From: The 8th Path to Full Employment Conference and the 13th National Conference on Unemployment, 7-8 December 2006, Newcastle, NSW, Australia.

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Abstract

This paper analyses under what conditions employers recruit from the long-term unemployed. We know that firms employ long-term unemployed when the labour market tightens sufficiently. This paper explores whether employers recruit from the long-term unemployed when the pool of long-term unemployed becomes more heterogeneous and of higher quality, which occurs in slack labour market conditions. In such conditions the effectiveness of stigma evaporates. We employ a British survey on firms participating in wage subsidy schemes. We find support for our proposition. Employers recruit from the long-term unemployed for progressively more complex jobs when labour market tightness eases.

Item ID: 8336
Item Type: Conference Item (Refereed Research Paper - E1)
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The Full Employment or WorkChoices and Welfare-to-Work Conference 2006 incorporated the 8th Path to Full Employment Conference and the 13th National Conference on Unemployment.

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Date Deposited: 25 Feb 2010 00:25
FoR Codes: 14 ECONOMICS > 1402 Applied Economics > 140211 Labour Economics @ 100%
SEO Codes: 91 ECONOMIC FRAMEWORK > 9101 Macroeconomics > 910107 Macro Labour Market Issues @ 100%
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