How effective are hiring subsidies in reducing long-term unemployment among prime-aged jobseekers? Evidence from Belgium
Abstract 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 shor... Mehr ...
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| Dokumenttyp: | Artikel |
| Erscheinungsdatum: | 2022 |
| Reihe/Periodikum: | IZA Journal of Labor Policy ; volume 12, issue 1 ; ISSN 2193-9004 |
| Verlag/Hrsg.: |
Walter de Gruyter GmbH
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| Sprache: | Englisch |
| Permalink: | https://search.fid-benelux.de/Record/base-27387078 |
| Datenquelle: | BASE; Originalkatalog |
| Powered By: | BASE |
| Link(s) : | http://dx.doi.org/10.2478/izajolp-2022-0003 |
Abstract 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.