How effective are hiring subsidies in reducing long-term unemployment among prime-aged jobseekers? : evidence from Belgium
Sam Desiere and Bart Cockx
Hiring subsidies are widely used to create (stable) employment for the long-term unemployed. This paper exploits the abolition of a hiring subsidy targeted at long-term unemployed jobseekers older than 45 years of age in Belgium to evaluate its effectiveness in the short and medium run. Based on a triple-difference methodology, the hiring subsidy is shown to increase the job-finding rate by 13% without any evidence of spillover effects. This effect is driven by a positive effect on individuals with at least a bachelor's degree. However, the hiring subsidy mainly creates temporary short-lived employment: eligible jobseekers are not more likely to find employment that lasts at least 12 consecutive months compared with ineligible jobseekers.
Year of publication: |
2022
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Authors: | Desiere, Sam ; Cockx, Bart |
Published in: |
IZA journal of labor policy. - Warsaw : Sciendo, ISSN 2193-9004, ZDB-ID 2687583-4. - Vol. 12.2022, 1, Art.-No. 3, p. 1-38
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Subject: | hiring subsidies | long-term unemployment | prime-aged jobseekers | triple difference | temporary help agencies | Langzeitarbeitslosigkeit | Long-term unemployment | Belgien | Belgium | Subvention | Subsidy | Personalbeschaffung | Recruitment | Lohnsubvention | Wage subsidy | Leiharbeit | Temporary agency work | Arbeitsmarktpolitik | Labour market policy | Schätzung | Estimation | Arbeitsvermittlung | Employment office | Arbeitsuche | Job search |
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