Austria: employment agency acknowledges the failure of its «combined wage» experiment

While Germany dreams to create 350 000 jobs with the introduction of a combined wage, Austria has stopped the experiment started in February 2006 and which ended with the creation of 213 jobs, whereas 5000 had been hoped. (Ref 06886)
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After a long debate over the introduction of a combined wage for job-seekers throughout 2005, Austria had decided to experiment this idea imported from Germany, starting in February 2006. The Arbeitsmarktservice (AMS), the Austrian employment agency, had launched a “combined wage” offer for the long-term unemployed aged under 25 and over 45. In this model, conceived for a year, the employer receives a flat subsidy amounting to 15 % of the gross wage. In exchange, he must respect the sector’s sa

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