The use of permanent contracts across Spanish regions: Do regional wage subsidies work?

Yolanda Rebollo Sanz () and J. Ignacio Pérez
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J. Ignacio Pérez: Centro de Estudios Andaluces

No E2008/09, Economic Working Papers at Centro de Estudios Andaluces from Centro de Estudios Andaluces

Abstract: This article evaluates the effectiveness of regional wage subsidies to foster permanent employment using information gathered from the “Muestra Continua de Vidas Laborales”. This dataset, which is used here for the first time as a source for evaluating Spanish labour market policy, offers a complete employment history for each individual, with no aggregation bias. The policy analyzed consists of a one-time subsidy offered by some Spanish regions for new permanent contracts signed for certain fixed-term employees and unemployed workers. Because our policy variable presents individual, regional and temporal variation, we apply a triple difference estimator to identify the average treatment effect of this policy. We conclude that the outflow into permanent employment of eligible workers improves only minimally under this policy. Nevertheless, the incidence is relatively greater for temporary workers than for unemployed ones and is also larger for younger and middle-aged female workers.

Keywords: Difference-in-difference-in-difference; Causal Evaluation Analysis; Regional Wage Subsidies (search for similar items in EconPapers)
JEL-codes: J38 J68 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec, nep-geo and nep-lab
Date: 2008
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Related works:
Working Paper: The use of permanent contracts across Spanish regions: Do regional wage subsidies work? (2007)
Working Paper: The Use of Permanent Contracts Across Spanish Regions: Do Regional Wage Subsidies Work? (2007)
Working Paper: The use of permanent contracts across Spanish regions: Do regional wage subsidies work? (2007)
Journal Article: The use of permanent contracts across Spanish regions: Do regional wage subsidies work? (2009)
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