2023-09-28 14:46:10 +00:00
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abstract: 'Many European countries have implemented policies to revive their
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domestic service sectors. A common goal of these reforms has been to
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create employment for disadvantaged groups on the domestic labor market.
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I evaluate a Swedish policy where domestic service firms receive a 50\%
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tax deduction on labor costs. Detailed data from tax records identify
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all formal workers and owners of firms that receive deductions. I
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describe the composition of workers and owners in these firms with
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respect to three groups targeted by Swedish policymakers: refugees,
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people with low education, and people who enter the workforce from
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long-term unemployment. I find that the shares of refugees and long-term
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unemployed in the subsidized sector barely exceed the shares in the full
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private labor force, and fall far below the shares in industrial sectors
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with a predominance of elementary jobs. The share of people with low
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education is higher than in the full private sector and on par with
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other low-skilled sectors. I conclude that the tax subsidy largely
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failed to improve employment opportunities among the target groups. An
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extended analysis suggests that labor immigration from other EU
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countries may be a partial explanation for this. EU immigrants operate
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half of all subsidized firms in Sweden''s largest cities and nearly
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exclusively employ other EU immigrants.'
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affiliation: 'Rickne, J (Corresponding Author), Stockholm Univ \& Nottingham Univ,
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Swedish Inst Social Res SOFI, SE-10691 Stockholm, Sweden.
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Rickne, Johanna, Stockholm Univ \& Nottingham Univ, Swedish Inst Social Res SOFI,
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SE-10691 Stockholm, Sweden.'
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article-number: '20210001'
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author: Rickne, Johanna
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author-email: Johanna.rickne@sofi.su.se
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author_list:
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- family: Rickne
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given: Johanna
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da: '2023-09-28'
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doi: 10.2478/izajolp-2021-0001
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files: []
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issn: 2193-9004
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journal: IZA JOURNAL OF LABOR POLICY
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keywords: Domestic Services; Tax Deduction; Employment; Refugee Immigrants
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keywords-plus: AN ANALYSIS; EMPLOYMENT; EQUALITY; GENDER
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language: English
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month: MAY 13
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number: '1'
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number-of-cited-references: '39'
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orcid-numbers: Rickne, Johanna/0000-0002-3733-7606
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papis_id: 83ffc81c8e7cc3dbdd8b74cbd921fe88
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ref: Rickne2021whocleans
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researcherid-numbers: 'Rickne, Johanna/AEY-8084-2022
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'
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times-cited: '0'
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title: Who cleans my house if the government pays? Refugees, low-educated workers,
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and long-term unemployed in tax-subsidized domestic service firms
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2023-10-01 08:15:07 +00:00
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type: article
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2023-09-28 14:46:10 +00:00
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unique-id: WOS:000670017200001
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usage-count-last-180-days: '0'
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usage-count-since-2013: '1'
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volume: '11'
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web-of-science-categories: Industrial Relations \& Labor
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year: '2021'
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