How effective are hiring subsidies in reducing long-term unemployment among prime-aged jobseekers? Evidence from Belgium
Sam Desiere and
IZA Journal of Labor Policy, 2022, vol. 12, issue 1, 38
Hiring subsidies are widely used to create (stable) employment for the long-term unemployed. This paper exploits the abolition of a hiring subsidy targeted at long-term unemployed jobseekers older than 45 years of age in Belgium to evaluate its effectiveness in the short and medium run. Based on a triple-difference methodology, the hiring subsidy is shown to increase the job-finding rate by 13% without any evidence of spillover effects. This effect is driven by a positive effect on individuals with at least a bachelor's degree. However, the hiring subsidy mainly creates temporary short-lived employment: eligible jobseekers are not more likely to find employment that lasts at least 12 consecutive months compared with ineligible jobseekers.
Keywords: hiring subsidies; long-term unemployment; prime-aged jobseekers; triple difference; temporary help agencies (search for similar items in EconPapers)
JEL-codes: H22 J08 J18 J23 J38 J64 J65 J68 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:izajlp:v:12:y:2022:i:1:p:38:n:2
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