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Employment Subsidies, Informal Economy and Women's Transition into Work in a Depressed Area: Evidence from a Matching Approach

Manuela Deidda (), Adriana Di Liberto (), M. Foddi () and Giovanni Sulis ()

Working Paper CRENoS from Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia

Abstract: We analyse the effects of an active labour market program for disadvantaged workers recently implemented in an Italian depressed area. Our sample includes 859 workers, mostly women, who entered the program before April 2008 and were subsequently interviewed in 2009-10. We complement the existing administrative data with survey data that enables us to control for numerous individual and labour market characteristics for both treated and non-treated individuals. Using propensity-score matching methods, we do find that the employment subsidy had a positive and significant effect (ATT) on both the probability of finding a job for participants and on their level of income. We also control for effect heterogeneity and find that the outcome of the policy was higher for women and, among them, we also find that the program was more effective on less educated and older female workers. Finally, we exploit unique information on previous contacts between workers and firms and on the use of informal channels for job search activity to explore the role of underground employment relations for the effectiveness of the policy.

Keywords: active labour market programs; female labour-force participation; employment subsidies; propensity score matching; informal networks (search for similar items in EconPapers)
JEL-codes: J64 J16 C14 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-iue and nep-lab
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Related works:
Journal Article: Employment subsidies, informal economy and women’s transition into work in a depressed area: evidence from a matching approach (2015) Downloads
Working Paper: Employment Subsidies, Informal Economy and Women's Transition into Work in a Depressed Area: Evidence from a Matching Approach (2015) Downloads
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