Effects of Hiring Credits on the Argentine Labor Market

Octavio Bertín, Guillermo Cruces, Fabian Enrique Gonzalez, Ignacio Lunghi and Azul Menduiña
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Octavio Bertín: CEDLAS-IIE-FCE-UNLP
Guillermo Cruces: CEDLAS-IIE-FCE-UNLP & University of Nottingham
Ignacio Lunghi: CEDLAS-IIE-FCE-UNLP
Azul Menduiña: CEDLAS-IIE-FCE-UNLP

CEDLAS, Working Papers from CEDLAS, Universidad Nacional de La Plata

Abstract: This study assesses the impact of a hiring credit policy introduced in Argentina in 2014 on various labor outcomes of firms. The reform established differentiated labor cost reductions in the employers contributions to be paid for their new employees, according to the size that firms had at a date prior to the announcement of the policy. Using a differences-in-differences approach and employer-employee administrative data, we analyze the intervention’s effects. Our results show a significant 4.1 percentage point increase in employment growth rates for small firms compared to medium-sized ones, persisting for several years post-reform. This paper also explores the relationship between the intervention’s effects and sector labor informality; we find a significant 6.2 percentage point increase in employment growth rates for firms in high-informality sector, whereas no significant effect is found for firms in low-informality sectors.

JEL-codes: C31 J08 J23 O17 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2024-12
New Economics Papers: this item is included in nep-iue, nep-lam and nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:dls:wpaper:0342

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