Impact Analysis of the Wage Subsidy Measures : Micro-effect Analysis on Long-term Job-seekers' Grant

임금보조금 사업의 효과분석 : 장기구직자 고용촉진 장려금에 대한 미시적 효과분석

  • Published : 2006.08.31


This study begins with the assumption that the existing impact analysis studies did not present determinate criteria on which the studies were based. After we criticized the limitations of existing studies, we presented goal-based criteria and evaluated the long-term job-seekers subsidy as a case. This evaluation study is of micro-effect analysis which focuses on the effects on subsidized employees and employers. The Findings are: The subsidized employees were appropriately selected and can be taken as having difficulties in the labour market. The employment effect of the subsidy was significantly positive, though the wage effect was significantly negative. The effect of maintaining of skill measured by occupational mobility was positive, but not significant. The effect of increasing the quantity of employments in the subsidized companies were found significant. It could be proposed from the findings that the wage subsidy for the frail labour force is so effective as the subsidy for the employed labour force and could be boosted.


wage subsidy;unemployment insurance;long-term job-seekers subsidy;goal-based evaluation;impact analysis