The Effectiveness of Hiring Credits
Pierre Cahuc,
Stéphane Carcillo and
Thomas Le Barbanchon
The Review of Economic Studies, 2019, vol. 86, issue 2, 593-626
Abstract:
This article analyses the effectiveness of hiring credits. Using comprehensive administrative data, we show that the French hiring credit, implemented during the Great Recession, had significant positive employment effects and no effects on wages. Relying on the quasi-experimental variation in labour cost triggered by the hiring credit, we estimate a structural search and matching model. Simulations of counterfactual policies show that the effectiveness of the hiring credit relied to a large extent on three features: it was non-anticipated, temporary and targeted at jobs with rigid wages. We estimate that the cost per job created by permanent hiring credits, either countercyclical or time-invariant, in an environment with flexible wages would have been much higher.
Keywords: Hiring credit; Labour demand; Search and matching model (search for similar items in EconPapers)
JEL-codes: C31 C93 J6 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (85)
Downloads: (external link)
http://hdl.handle.net/10.1093/restud/rdy011 (application/pdf)
Access to full text is restricted to subscribers.
Related works:
Working Paper: The Effectiveness of Hiring Credits (2019)
Working Paper: The Effectiveness of Hiring Credits (2019)
Working Paper: The Effectiveness of Hiring Credits (2017) 
Working Paper: The Effectiveness of Hiring Credits (2017) 
Working Paper: The Effectiveness of Hiring Credits (2017) 
Working Paper: The Effectiveness of Hiring Credits (2017) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:oup:restud:v:86:y:2019:i:2:p:593-626.
Access Statistics for this article
The Review of Economic Studies is currently edited by Thomas Chaney, Xavier d’Haultfoeuille, Andrea Galeotti, Bård Harstad, Nir Jaimovich, Katrine Loken, Elias Papaioannou, Vincent Sterk and Noam Yuchtman
More articles in The Review of Economic Studies from Review of Economic Studies Ltd
Bibliographic data for series maintained by Oxford University Press ().