Do wage subsidies provide a stepping-stone to employment for recent college graduates? Evidence from a randomized experiment in Jordan

Matthew Groh; Nandini Krishnan; David McKenzie; Tara Vishwanath

doi:10.1162/REST_a_00584

Do wage subsidies provide a stepping-stone to employment for recent college graduates? Evidence from a randomized experiment in Jordan

Matthew Groh, Nandini Krishnan, David McKenzie, Tara Vishwanath

Management and Organizations

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31 Scopus citations

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.

Original language	English (US)
Pages (from-to)	488-502
Number of pages	15
Journal	Review of Economics and Statistics
Volume	98
Issue number	3
DOIs	https://doi.org/10.1162/REST_a_00584
State	Published - Jul 1 2016

ASJC Scopus subject areas

Social Sciences (miscellaneous)
Economics and Econometrics

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1162/REST_a_00584

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Do wage subsidies provide a stepping-stone to employment for recent college graduates? Evidence from a randomized experiment in Jordan

Abstract

ASJC Scopus subject areas

UN SDGs

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