Employer-side wage subsidies (reduction in labour costs)

Employer-side wage subsidies reduce the financial costs or risks associated with not knowing the productivity of the person to be employed. They may also serve to lower the costs to employers of providing on-the-job youth training. Such training subsidies offer the possibility of expanding the number of work-based training places for disadvantaged young people. These studies evaluate employer-side subsidies in terms of reduced wage or labour costs.