Abstract
This article assembles findings from empirical evaluation studies of the effects of employment subsidies or reductions in employers' social security contributions aimed at stimulating recruitment of long-term unemployed persons and other vulnerable groups. Most suggest the net employment effects are modest to slight. The measured effects are consistently much lower than what most theoretical models and simulations predict, even under relatively pessimistic assumptions, mainly because of deadweight losses and, to a lesser extent, substitution effects. The available studies indicate that the impact of subsidies on beneficiaries' careers is limited, and possibly negative, except if coupled with training and job counselling.