Do Wage Subsidies Provide a Stepping-Stone to Employment for Recent College Graduates? Evidence from a Randomized Experiment in Jordan

A-Tier
Journal: Review of Economics and Statistics
Year: 2016
Volume: 98
Issue: 3
Pages: 488-502

Authors (4)

Matthew Groh (not in RePEc) Nandini Krishnan (not in RePEc) David McKenzie (World Bank Group) Tara Vishwanath (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This study examines the impact of a randomized experiment in Jordan in which female community college graduates were assigned to receive a wage subsidy voucher. The wage voucher led to a 38 percentage point increase in employment in the short run, but the average effect is much smaller and no longer statistically significant after the voucher period has expired. The extra job experience gained as a result of the wage subsidy does not provide a stepping-stone to new jobs for these recent graduates, which appears to be due to productivity levels not rising above a binding minimum wage.

Technical Details

RePEc Handle
repec:tpr:restat:v:98:y:2016:i:3:p:488-502
Journal Field
General
Author Count
4
Added to Database
2026-01-26