Template-type: ReDif-Paper 1.0
Author-Name: Albanese, Andrea
Author-Name: Cockx, B.
Author-Name: Dejemeppe, Muriel
Title: Long-Term Effects of Hiring Subsidies for Low-Educated Unemployed Youths
Abstract: We use a regression discontinuity design and difference-in-differences estimators to estimate<br/>the impact of a one-shot hiring subsidy for low-educated unemployed youths during<br/>the Great Recession recovery in Belgium. The subsidy increases job-finding in the private<br/>sector by 10 percentage points within one year of unemployment. Six years later, high<br/>school graduates accumulated 2.8 quarters more private employment. However, they substitute<br/>private for public and self-employment; thus, overall employment does not increase<br/>but is still better paid. For high school dropouts, no persistent gains emerge. Moreover, the<br/>neighboring employment hub of Luxembourg induces a complete deadweight loss near the<br/>border.
Classification-JEL: c21,j08,j23,j24,j64,j68,j61
Series: GSBE Research Memoranda
Creation-Date: 20230608
Number: 008
File-URL: https://cris.maastrichtuniversity.nl/ws/files/139344518/RM23008.pdf
File-Format: application/pdf
File-Size: 9620720
Handle: Repec:unm:umagsb:2023008
DOI: 10.26481/umagsb.2023008