Permanent wage cost subsidies for older workers. An effective tool for employment retention and postponing early retirement?

Andrea Albanese and Bart Cockx

Labour Economics, 2019, vol. 58, issue C, 145-166

Abstract: This paper examines the effects of a permanent wage cost subsidy in Belgium on employment retention, working time and hourly wage of older men. To estimate these effects we propose a semi-parametric weighted difference-in-differences estimator that accounts for endogenous stratification in the sampling from a population of men born between 1941 and 1950. We find small positive short-run impacts on working time and larger ones on the retention rate in employment, but only for employees at high risk of early retirement. The wage is not affected.

Keywords: Wage cost subsidies; Older workers; Weighted difference-in-differences; Endogenous sampling (search for similar items in EconPapers)
JEL-codes: C21 J14 J18 J3 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (45)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:58:y:2019:i:c:p:145-166

DOI: 10.1016/j.labeco.2018.01.005

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