 Home work: Exploring the labor market effects of subsidizing domestic servicesElisabeth Leduc and Ilan Tojerow Labour Economics, 2024, vol. 90, issue C Abstract: This paper analyzes subsidies for the domestic services sector, an increasingly popular policy to create employment opportunities for low-skilled workers. Using Belgian administrative data, a differences-in-differences approach, and a shift-share instrumental variable, we estimate the local effects of the policy in targeted industries as well as overall effects on the labor market. We find that domestic service subsidies can increase female employment in the subsidized industries as well as the overall employment rate. This increase in employment is primarily driven by an increase in (formal) labor market participation and, to a lesser extent, a reduction in the rate of participation in unemployment insurance and in other social welfare programs. We also find that these subsidies can lead to an increase in the rate of work incapacity, likely due to the fact they broaden the population that can access the social safety net. Keywords: Wage Subsidies; Low-Skilled Workers; Unemployment; Domestic Services, Personal and Household Services; Female Employment (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:90:y:2024:i:c:s0927537124000903 DOI: 10.1016/j.labeco.2024.102595 Access Statistics for this article Labour Economics is currently edited by A. Ichino More articles in Labour Economics from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.