Arbeitspapier

How Effective Are Hiring Subsidies to Reduce Long-Term Unemployment among Prime-Aged Jobseekers? Evidence from Belgium

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 over 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 spill-over effects. This effect is driven by a positive effect on individuals with at least a bachelor's degree. However, the hiring subsidy mainly created temporary short-lived employment: eligible jobseekers were not more likely to find employment that lasted at least twelve consecutive months than ineligible jobseekers.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 14767

Klassifikation
Wirtschaft
Taxation and Subsidies: Incidence
Labor Economics Policies
Demographic Economics: Public Policy
Labor Demand
Wages, Compensation, and Labor Costs: Public Policy
Unemployment: Models, Duration, Incidence, and Job Search
Unemployment Insurance; Severance Pay; Plant Closings
Mobility, Unemployment, and Vacancies: Public Policy
Thema
hiring subsidies
long-term unemployment
prime-aged jobseekers
triple difference
temporary help agencies

Ereignis
Geistige Schöpfung
(wer)
Desiere, Sam
Cockx, Bart
Ereignis
Veröffentlichung
(wer)
Institute of Labor Economics (IZA)
(wo)
Bonn
(wann)
2021

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Desiere, Sam
  • Cockx, Bart
  • Institute of Labor Economics (IZA)

Entstanden

  • 2021

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