Hostname: page-component-848d4c4894-hfldf Total loading time: 0 Render date: 2024-06-11T12:28:08.439Z Has data issue: false hasContentIssue false
  • English
  • Français

Lost in Categorisation? Employment Subsidies – Bringing the Beneficiaries Back In

Published online by Cambridge University Press:  25 March 2022

DAVID KEITH ROBERTSHAW Open the ORCID record for DAVID KEITH ROBERTSHAW [Opens in a new window]
DAVID KEITH ROBERTSHAW*
Affiliation:
Centre for Employment Relations, Innovation and Change. Leeds University Business School
Get access Rights & Permissions [Opens in a new window]

Abstract

Employment subsidies are important active labour market policy (ALMP) tools, suited to a variety of labour market challenges. This paper engages with recent ALMP categorisation debates by appraising Cronert’s (2019) recent typology of employment subsidies. It uses empirical material to assess the typology’s explanatory power and produce insights to inform further typological development. The illustrative case of the British ‘Wage Incentive’ (2012-2014) is used to assess the typology’s analytical purchase. Cronert’s typology helpfully identifies key distinctions in the distributional profiles of employment subsidies, but further understanding of the category is impeded by the practice of defining them as demand-side interventions. The paper argues for a reappraisal of their supply-side characteristics, maintaining that the (potential) worker should be included in the analysis, and that employment subsidies’ relationship with training and job creation should be acknowledged. It proposes a redefinition of employment subsidies reflecting their real-world use, and suggests a framework for further exploring varieties of employment subsidy design from the perspective of beneficiaries.

Type
Article
Information
Journal of Social Policy , Volume 53 , Issue 1 , January 2024 , pp. 86 - 106
Copyright
© The Author(s), 2022. Published by Cambridge University Press

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Adams, L., Oldfield, K. and Tindle, A. (2011), Six Month Offer Evaluation: Findings from the longitudinal claimant survey. Sheffield: DWP.Google Scholar
Arora, S.K., Li, Y., Youtie, J. and Shapira, P. (2016), ‘Using the wayback machine to mine websites in the social sciences: A methodological resource’. Journal of the Association for Information Science and Technology, 67, 1904–1915.CrossRefGoogle Scholar
Bonoli, G. (2010). ‘The Political Economy of Active Labor-Market Policy’. Politics & Society, 38: 4, 435–457.CrossRefGoogle Scholar
Boone, J. and van Ours, J. (2004), Effective Active Labor Market Policies, DP1335. Bonn: IZA.CrossRefGoogle Scholar
Bredgaard, T. (2018), Employers and Active Labour Market Policies: Typologies and Evidence. Social Policy and Society, 365–378.CrossRefGoogle Scholar
Burtless, G. (1985), Are targeted wage subsidies harmful? Evidence from a wage voucher experiment. ILR Review. 39, 1, 105–114.CrossRefGoogle Scholar
Butler, P. (2012), ‘What Happens if the Work Programme Doesn’t Work?’, Guardian, 22nd February.Google Scholar
Calmfors, L. (1994), ‘Active labor market policy and unemployment—a framework for the analysis of crucial design features’. OECD Economic Studies, 22, 7–47.Google Scholar
Clasen, J. and Clegg, D. (2006), Beyond activation reforming European unemployment protection systems in post-industrial labour markets. European Societies, 8, 4, 527–553.CrossRefGoogle Scholar
Clasen, J., Clegg, D., and Goerne, A. (2016). ‘Comparative Social Policy Analysis and Active Labour Market Policy: Putting Quality before Quantity’. Journal of Social Policy, 45: 1, 21–38.CrossRefGoogle Scholar
Coleman, N., McGinigal, S., Thomas, A. Fu, E. and Hingley, S. (2014), Evaluation of the Youth Contract wage incentive – Wave two research. London: DWP.Google Scholar
Cronert, A. (2017), ‘Unemployment reduction or labor force expansion? How partisanship matters for the design of active labor market policy in Europe”, Socio-Economic Review, 17 (4), 921–946.CrossRefGoogle Scholar
Cronert, A. (2019), ‘Varieties of Employment Subsidy Design: Theory and Evidence from Across Europe’, Journal of Social Policy, 48:4, 839–859.CrossRefGoogle Scholar
Crowley, L. and Cominetti, N. (2014), The geography of youth unemployment. Lancaster: The Work Foundation.Google Scholar
Dinan, S. (2019), ‘A typology of activation incentives’, Social Policy and Administration, 53:1, 1–15.CrossRefGoogle Scholar
DWP (2012a), Wage incentive scheme – Terms & Conditions, 7th December. Google Scholar
DWP (2012b), Wage Incentives [Online via Wayback Machine]: http:/www.dwp.gov.uk/youth-contract/key-initiatives/wage-incentives/ (Accessed 17th August 2012).Google Scholar
DWP (2013a), Youth Contract Wage Incentive Payments – Experimental Statistics, 22 nd July. Google Scholar
DWP (2013b), Youth Contract Wage Incentive Job Starts – Management Information, 22 nd July. Google Scholar
DWP (2013c), “Claimant Commitment to spell out what jobseekers must do in return for benefits”, 29th August.Google Scholar
DWP (2013d), Work Programme Provider Guidance Chapter 20–Youth Contract – Wage Incentives. Google Scholar
DWP (2014a), Youth Contract Official Statistics, 28 th August.Google Scholar
DWP (2014b), Work Programme Provider Live Running Memos [Online]. Available from: https://www.gov.uk/government/collections/work-programme-provider-live-running-memos [Accessed 03/03/2013].Google Scholar
DWP (2014c), Youth Contract Employer Wage Incentive (Jobcentre Plus Channel), Guidance. [Online]. Available from: https://www.whatdotheyknow.com/request/incentives_to_get_people_back_to [Accessed 03/06/2014].Google Scholar
DWP (2015), Youth Contract Official Statistics: April 2012 to May 2015, 26 th August.Google Scholar
DWP (2020), “Guidance: Check if you can apply for a grant through the Kickstart Scheme” 2nd September.Google Scholar
EPPO (2014), Stimulating Job Demand: The Design of Effective Hiring Subsidies in Europe. Birmingham: EPPO.Google Scholar
Gregg, P. (2015), ‘Youth unemployment in the UK’ in Dolado, J., (Ed.), No Country for Young People. London: CEPR Press.Google Scholar
Fay, R. (1996), “Enhancing the Effectiveness of Active Labour Market Policies”. OECD: Paris.Google Scholar
Finn, D. (1987), Training Without Jobs. London: Macmillan.Google Scholar
Grover, C., and Piggott, L. (2013). ‘A commentary on resistance to the UK’s Work Experience programme: Capitalism, exploitation and wage work’. Critical Social Policy, 33:3, 554–563.CrossRefGoogle Scholar
Hamermesh, D. (1978), ‘Subsidies for Jobs in the Private Sector’ in Palmer, J. (ed.), Creating Jobs: Public Employment Programs and Wage Subsidies. Washington D.C.: The Brookings Institution.Google Scholar
Hamermesh, D. (1993), Labor Demand. New Jersey: Princeton.CrossRefGoogle Scholar
Harari, D. (2010), Welfare to Work Programmes: An Overview. House of Commons Library SN/EP/5627.Google Scholar
Haveman, R. and Christainsen, G. (1978), ‘Public Employment and Wage Subsidies in Western Europe and the U.S.: What We’re Doing and What We Know’, in O. Ashenfelter, ed., European Labor Market Policies, Special Report 27 (Washington: National Commission on Manpower Policy).Google Scholar
Haveman, R. and Palmer, J. (eds.) (1982), Jobs for Disadvantaged Workers. Washington DC: The Brookings Institution.Google Scholar
H.M. Government (2011), Building Engagement, Building Futures. December 2011.Google Scholar
H.M. Treasury (2010), ‘Government announces £6.2bn of savings in 2010-11’ [Online]. Available from: http://webarchive.nationalarchives.gov.uk/20130129110402/http://www.hm-treasury.gov.uk/d/press_04_10.pdf [Accessed 30/06/2015].Google Scholar
Huo, J. (2006), Third Way Reforms: A Comparative Study of Social Democratic Reforms After The Golden Age [Doctoral Thesis].Google Scholar
ILO (2015), What works in wage subsidies for young people: A review of issues, theory, policies and evidence. WP199. Geneva: ILO.Google Scholar
Ingold, J. and Stuart, M. (2015), ‘The Demand-Side of Active Labour Market Policies: A Regional Study of Employer Engagement in the Work Programme’. Journal of Social Policy, 44:3, 443–462.CrossRefGoogle Scholar
Jarvis, T. (1997), Welfare-to-work: The New Deal. House of Commons Library, RP 97/118.Google Scholar
Jimeno, J. F. and Rodriguez-Palenzuela, D. (2003), ‘Youth unemployment in the OECD: demographic shifts, labour market institutions and macroeconomic shocks’, WP155. Brussels: ECB.CrossRefGoogle Scholar
Jordan, L., McGinigal, S. Thomas, A. and Coleman, N. (2013), Early evaluation of the Youth Contract wage incentive scheme. Sheffield: DWP.Google Scholar
Katz, L. (1996), Wage subsidies for the disadvantaged. NBER Working Paper 5679.CrossRefGoogle Scholar
Kettner, A. and Rebien, M. (2007), Soziale Arbeitsgelegenheiten. Einsatz und Wirkungsweise aus betrieblicher und arbeitsmarktpolitischer Perspektive. IAB-Forschungsbericht 2/2007. Nuremberg: Institute for Employment Research.Google Scholar
Leeds City Region (2013), Tackling Youth Unemployment in Leeds City Region – Young Talent: Head Start. Google Scholar
LGA (2014), Councils supporting youth transitions into work and learning. London: LGA.Google Scholar
Lødemel, I. and Trickey, H. (eds.) (2000), ‘ An Offer You Can’t Refuse ’. Bristol: Policy Press.Google Scholar
Maguire, S. (2015). ‘Young people not in education, employment or training (NEET): Recent policy initiatives in England and their effects’, Research in Comparative and International Education, 10: 4, 525–536.CrossRefGoogle Scholar
Martin, J. P. and Grubb, D. (2001), What works and for Whom, IFAU WP2001:14.Google Scholar
McCulloch, G. (2004), Documentary Research in Education, History, and the Social Sciences. London: Routledge.CrossRefGoogle Scholar
Meadows, P. (2006), What works with tackling worklessness?. London: LDA.Google Scholar
Moczall, A. (2013), Subsidies for substitutes? New evidence on deadweight loss and substitution effects of a wage subsidy for hard-to-place job-seekers. Nürnberg: IAB.Google Scholar
OECD (2009), Employment Outlook. Paris: OECD.Google Scholar
OECD (2020), Job retention schemes during the COVID-19 lockdown and beyond. Paris: OECD.Google Scholar
ONS (2011), Labour Market Statistics, 16 th November.Google Scholar
Peck, J. (2001), Workfare States. New York: Guilford Press.Google Scholar
Sage, D. (2016), ‘Young people at risk: Challenges and policy options for the UK’ Sim Europe Policy Brief, 2016/01.Google Scholar
Scarpetta, S. Sonnet, A. and Manfredi, T. (2010), ‘Rising Youth Unemployment during the crisis: how to prevent negative long-term consequences on a generation?’ Paris: OECD.Google Scholar
Silverman, D. (2011), Interpreting Qualitative Data 4 th Ed. London: Sage.Google Scholar
Sissons, P., and Green, A. E. (2017), More than a match? Assessing the HRM challenge of engaging employers to support retention and progression. HRM Journal, 27: 565–580.Google Scholar
Standing, G. (1999), Global Labour Market Flexibility: Seeking Distributive Justice. London: Macmillan.Google Scholar
Tassinari, A., Hadjivassiliou, K. and Swift, S. (2016), ‘Plus ça change…? Innovation and continuity in UK youth employment policy in the Great Recession’, Politiche Sociali, 2, 225–248.Google Scholar
Vlandas, T. (2013). Mixing apples with oranges? Partisanship and active labour market policies in Europe. Journal of European Social Policy, 23(1), 3–20.Google Scholar
Waite, E. (2014), “Cabinet Report: Ambition SCR”, Sheffield City Council, 20th August.Google Scholar
WayBack Machine (2020). [Online] Available from: http://www.archive.org/web Google Scholar
Weishaupt, T. (2011), From the Manpower Revolution to the Activation Paradigm. Amsterdam: Amsterdam University Press.Google Scholar
Welters, R. and Muysken, J. (2006), Employer search and employment subsidies, Applied Economics, 38:12, 1435–1448.CrossRefGoogle Scholar
WPSC (2010), Youth Unemployment and the Future Jobs Fund. London: TSO.Google Scholar
WPSC (2012), Youth Unemployment and the Youth Contract. London: TSO.Google Scholar