Permanent Wage Cost Subsidies for Older Workers. An Effective Tool for Increasing Working Time and Postponing Early Retirement?
Andrea Albanese and
Bart Cockx
No 5301, CESifo Working Paper Series from CESifo
Abstract:
In several OECD countries age-targeted wage subsidies have been introduced to increase the employment of older workers, but evidence on their effectiveness is scarce. This paper examines the effects of a permanent wage cost subsidy in Belgium on the employment rate, working time and hourly wage. We estimate these effects by integrating Inverse Probability Weighting in a, possibly trend-adjusted, Difference-in-Differences of endogenously sampled repeated cross sections. We find small positive short-run impacts on working time and larger ones on the employment rate, but only for employees at high risk of leaving to 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 J30 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (14)
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Related works:
Working Paper: Permanent Wage Cost Subsidies for Older Workers. An Effective Tool for Increasing Working Time and Postponing Early Retirement? (2015) 
Working Paper: Permanent Wage Cost Subsidies for Older Workers: An Effective Tool for Increasing Working Time and Postponing Early Retirement? (2015) 
Working Paper: PERMANENT WAGE COST SUBSIDIES FOR OLDER WORKERS. AN EFFECTIVE TOOL FOR INCREASING WORKING TIME AND POSTPONING EARLY RETIREMENT? (2015) 
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_5301
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