How effective are hiring subsidies in reducing 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 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 e... Mehr ...
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| Dokumenttyp: | Artikel |
| Erscheinungsdatum: | 2022 |
| Reihe/Periodikum: | IZA Journal of Labor Policy, Vol 12, Iss 1, Pp 2-28 (2022) |
| Verlag/Hrsg.: |
Sciendo
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| Schlagwörter: | hiring subsidies / long-term unemployment / prime-aged jobseekers / triple difference / temporary help agencies / h22 / j08 / j18 / j23 / j38 / j64 / j65 / j68 / Labor policy. Labor and the state / HD7795-8027 |
| Sprache: | Englisch |
| Permalink: | https://search.fid-benelux.de/Record/base-26613704 |
| Datenquelle: | BASE; Originalkatalog |
| Powered By: | BASE |
| Link(s) : | https://doi.org/10.2478/izajolp-2022-0003 |
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.