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Table 1 Policy parameters – illustrative choices in selected countries

From: Wage subsidies in developing countries as a tool to build human capital: design and implementation issues

Policy parameter

Countries

Payee

Turkey – newly employed workers in low-income provinces;

 

Chile and Columbia – firm

Targeting

Colombia – youth (younger than 28),

 

long-term unemployed women (older than 40)

 

internally displaced, disabled, or

 

socially reintegrated individuals;

 

Belgium – long-term unemployed and low-wage workers

Duration

Chile – youth until age 25; other workers: 5–6 months;

 

Turkey – women, youth, and workers in low-income provinces 5 years

Level

South Africa – 50pc of wage up to R833 per month;

 

Austria – Age 50–55: 50pc of social security tax;

 

older than 55: 100pc of social security tax

Payment vehicle

Turkey – exemption from tax and social security contributions

 

Jordan - direct payment to employer

 

U.S. reduction in income taxes

Conditionalities employers

Colombia - less than 50 employees and assets less than

 

5000 time minimum wage

Conditionalities workers

Lebanon and Tunisia participation in life skills training