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Hiring subsidies for people with a disability: Evidence from a small‐scale social field experiment
Author(s) -
DEUCHERT Eva,
KAUER Lukas
Publication year - 2017
Publication title -
international labour review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.433
H-Index - 46
eISSN - 1564-913X
pISSN - 0020-7780
DOI - 10.1111/j.1564-913x.2014.00025.x
Subject(s) - subsidy , coaching , scale (ratio) , labour economics , vocational education , supported employment , business , work (physics) , psychology , demographic economics , economics , economic growth , engineering , management , mechanical engineering , market economy , physics , quantum mechanics
The effectiveness of hiring subsidies for people with disabilities remains unclear due to potential free‐rider, substitution and signalling effects. The authors propose a novel evaluation approach wherein it is randomly decided whether or not job applications disclose the subsidy to potential employers. Based on call‐back rates for interviews, the subsidy is found to be ineffective or even counterproductive in a group of adolescents having completed their vocational training programme. However, the negative signalling effect seems to be much weaker in a group of clients of job‐coaching services who acquired their disability during their working life.