Received: 2013-02-10  |  Accepted: 2013-03-18  |  Published: 2013-09-30

Title

Public sector‘s subsidies to business – suitability valuation of labor market support measures


Abstract

This scientific article explores the growing unemployment rate and its regulation through government’s subsidies to businesses since it is one of the major economic issues countries currently face. The number of various State-run job creating programs is increasing in Lithuania as in many other countries. This is an important factor to all businesses, since labor costs often comprise a large part of company’s expenses. The analysis of the labor costs generally are associated with two aspects – tax burden related to wages is important not only to companies, which try to minimize their expenses, maximize profit and achieve operational effectiveness, but also to public sector, which tries to collect more tax revenues to national budget and different funds. Therefore, the authors of this article identify State-run job creating programs and perform their comparative analysis. The results of the performed analysis show, that plethora of job creating programs exist in Lithuania, the implementation and use conditions of which are provided by different public sector institutions. Therefore, with the help of comparative analysis results, authors present specific recommendations to private sector in respect to effectiveness and impact of public sector’s support.


Keywords

labor market support, public sector’s subsidies to businesses, hiring subsidies, taxation, labour market


JEL classifications

H25 , J33 , M51 , M52


URI

http://jssidoi.org/jesi/article/5


DOI


HAL


Pages

37-44


This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Giriūnienė, Gintarė
Vilnius University, Vilnius, Lithuania https://www.vu.lt
Articles by this author in: CrossRef |  Google Scholar

Journal title

Entrepreneurship and Sustainability Issues

Volume

1


Number

1


Issue date

September 2013


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 1818  |  PDF downloads: 1055

References