Lost in categorisation? Employment subsidies – bringing the beneficiaries back in

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.