Title page

Contents

Abstract 3

1. Introduction 4

2. Method 6

2.1. Institutional framework 7

2.2. Vignette design 7

2.3. Data collection 8

2.4. Data description 11

3. Results 12

3.1. Effect of the hiring subsidy on selection decisions 12

3.2. Signals of the hiring subsidy 13

4. Conclusion 15

5. Declarations 17

References 17

Appendix 31

Table 1. Description of participant characteristics by experimental condition 24

Table 2. Linear regression results for outcome variables 25

Table 3. Linear regression results for perception variables 27

Figure 1. Average interview chance (IC) and hiring chance (HC) by age 23

Table A.1. Vignette factors and corresponding levels used in the experiment 31

Table A.2. Job characteristics and descriptions 32

Table A.3. Outcome and perception statements 33

Table A.4. Robustness checks on linear regression results for outcome variables 34