{"id":122036,"date":"2024-01-23T07:33:07","date_gmt":"2024-01-23T06:33:07","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/122036\/"},"modified":"2024-11-07T05:13:17","modified_gmt":"2024-11-07T04:13:17","slug":"selection-trade-and-employment-the-strategic-use-of-subsidies-wwwforeurope-policy-paper-no-21","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/122036\/","title":{"rendered":"Selection, Trade, and Employment: the Strategic Use of Subsidies. WWWforEurope Policy Paper No. 21"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-122036","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"We study how the interaction between economic openness and competitive selection affects the effectiveness of employment (and entry) subsidisation. Within a two country heterogeneous-firms model with endogenous labour supply, we find that optimal employment subsidies are always positive even though they can have pro- or anti-competitive effects on industry selection depending on whether the economy is open or not. We also find that selection effects resulting from international competition and fiscal externalities may imply that non-cooperative policies entail under-subsidisation of employment. Whilst always having procompetitive selection effects on the industry, entry subsidies are shown to be less effective in raising employment and welfare than employment subsidies.","onlinedate":"2015-04-01 12:00:00","lang":"English","publication_series":"WWWforEurope: Welfare, Wealth and Work for Europe","publication_date":"20150201","publication_date_year":"","publication_date_full":false,"publication_num_pages":"40","keywords":"[]","jelcodes":"[]","related_publications":"[]","pdf":357005,"zip":null,"link":"","monthly_report":false,"monthly_report_main":false,"monthly_report_volume":"","monthly_report_pages":"","monthly_report_pages_sort":"0","issue":"","journal":"","publisher":"","invisible":false,"external":false,"embargo_date":"2015-04-01 12:00:00","types":[81966],"research_groups":[3491],"collaboration":"","persons":[12485],"persons_data":"[{\"personId\":12485,\"personName\":\"Hassan Molana\",\"organisationNames\":[\"UNIVDUN\"]}]","clients":[10692,10704,10722,32851],"subclients":[],"partners":[],"topics":[],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","scientific_assistance":"[]","scientific_review":"[]","version":"","release_date":null,"expiration_date":null,"surveyor":"","research_assistance":"","edv":"","additional_info_de":"","additional_info_en":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Selection, Trade, and Employment: the Strategic Use of Subsidies. WWWforEurope Policy Paper No. 21 - WIFO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.wifo.ac.at\/en\/publication\/122036\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Selection, Trade, and Employment: the Strategic Use of Subsidies. 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