Which firms use targeted wage subsidies? An empirical note for Germany

Bellmann, Lutz; Stephan, Gesine

doi:10.1007/s12651-014-0157-2

Table 2 Probit estimates of the use of targeted wage subsidies, average marginal effects

From: Which firms use targeted wage subsidies? An empirical note for GermanyWelche Betriebe nutzen Eingliederungszuschüsse in Deutschland?

Use of wage subsidies in previous year	2003	2005	2007	2009
Western Germany	−0.08^∗∗	−0.07^∗∗	−0.04^∗∗	−0.04^∗∗
Agriculture, hunting & forestry	0.03	−0.00	−0.07^∗∗	0.03
Mining and electricity & gas	−0.02	−0.04	−0.06^∗	−0.02
Food products	0.02	−0.00	0.02	0.00
Consumer goods	−0.01	−0.00	−0.00	0.04^∗
Producer goods	0.00	0.01	0.01	0.01
Capital goods/ consumer durables	0.03^∗	0.00	0.02	0.02
Construction	−0.00	0.00	0.02	0.02
Transport and communication	−0.00	−0.03^∗	−0.03^∗	0.01
Financial intermediation	−0.09^∗∗	−0.09^∗∗	−0.09^∗∗	−0.06^∗∗
Hotels and restaurants	−0.01	0.01	−0.02	−0.01
Education	0.05^∗∗	0.00	0.01	0.04^∗
Health and social work	0.07^∗∗	0.05^∗∗	0.09^∗∗	0.09^∗∗
Business services	0.02	−0.00	0.03^∗	0.03^∗∗
Other service activities	−0.01	−0.00	0.03	−0.01
Non-profit organizations	0.02	−0.01	0.02	0.06^∗∗
Est. size 20 to 99 employees	0.10^∗∗	0.08^∗∗	0.10^∗∗	0.09^∗∗
Est. size 100 to 499 employees	0.18^∗∗	0.14^∗∗	0.17^∗∗	0.15^∗∗
Est. size 500 or more employees	0.22^∗∗	0.18^∗∗	0.21^∗∗	0.20^∗∗
Proportion skilled workers	−0.04^∗∗	−0.02^∗	−0.01	−0.03^∗∗
Proportion graduates	−0.04^∗	−0.06^∗∗	−0.07^∗∗	−0.10^∗∗
Proportion trainees	−0.01	−0.04	−0.06	−0.01
Proportion owners	−0.15^∗∗	−0.20^∗∗	−0.21^∗∗	−0.14^∗∗
Proportion women	−0.04^∗∗	−0.02^∗	−0.04^∗∗	−0.02^∗
Proportion fixed-term workers	0.05^∗∗	0.02	0.06^∗∗	0.08^∗∗
Works council	−0.02^∗	−0.03^∗∗	−0.03^∗∗	−0.03^∗∗
Industry-level agreement	−0.04^∗∗	−0.03^∗∗	−0.03^∗∗	−0.02^∗
Firm-level agreement	−0.01	−0.01	−0.03^∗∗	−0.02^∗
Employment growth rate	0.08^∗∗	0.06^∗∗	0.07^∗∗	0.05^∗∗
Labor turnover rate	0.05^∗∗	0.05^∗∗	0.07^∗∗	0.06^∗∗
Increase in employment expected	0.04^∗∗	0.04^∗∗	0.04^∗∗	0.03^∗∗
Decrease in employment expected	0.01	−0.01	−0.01	−0.01
Number of establishments	15,820	15,749	15,593	15,422
Pseudo coefficient of determination	0.12	0.12	0.14	0.13

IAB Establishment Panel, unweighted data: ^∗ α=0.05, ^∗∗ α=0.01
Reference: eastern Germany, wholesale, retail and repair, below 20 employees

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