the fact that the subsidy is paid for all jobs including jobs that would have existed even in the absence of the subsidy results in important deadweight losses by concentrating exclusively on newly created jobs hiring subsidies have the potential to be significantly more costeffective this equity consideration may be of considerable importance in recessions when the chances of regaining employment after displacement are particularly low for disadvantaged groups due to the large inflows of newly unemployed including increased numbers of wellqualified job losers