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 the impact of a one-shot hiring subsidy for low-educated unemployed youths during the Great Recession recovery in Belgium. The subsidy increases job-finding in the private sector by 10 percentage points within one year of unemployment. Six years later, high school graduates accumulated 2.8 quarters more private employment. However, they substitute private for public and self-employment; thus, overall employment does not increase but is still better paid. For high school dropouts, no persistent gains emerge. Moreover, the neighboring employment hub of Luxembourg induces a complete deadweight loss near the border.
Classification-JEL: c21,j08,j23,j24,j64,j68,j61
Series: ROA Research Memoranda
Creation-Date: 20230606
Number: 002
File-URL: https://cris.maastrichtuniversity.nl/ws/files/139821752/ROA_RM_2023_2.pdf
File-Format: application/pdf
File-Size: 9397939
Handle: Repec:unm:umaror:2023002
DOI: 10.26481/umaror.2023002