Can Subsidized Employment Tackle Long-Term Unemployment? Experimental Evidence from North Macedonia

Pedro Carneiro, Alex Armand, Federico Tagliati and Yiming Xia

No 15192, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper examines the impact of an experiment in North Macedonia in which vulnerable unemployed individuals applying to a subsidized employment program were randomly selected to attend job interviews. Employers hiring a new employee from the target population receive a subsidy covering the wage cost of the worker for the first six months. Using administrative employment data, we find that attending the job interview led to an increase of 15 percentage points in the likelihood of being employed 3.5 years after the start of the intervention. We also find positive and statistically significant effects on individuals’ non-cognitive and work-related skills.

Keywords: Active labor market policy; Unemployment; Wage subsidies; Job search (search for similar items in EconPapers)
JEL-codes: J08 J68 O15 (search for similar items in EconPapers)
Date: 2020-08
New Economics Papers: this item is included in nep-ltv
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Related works:
Working Paper: Can subsidized employment tackle long-term unemployment? Experimental evidence from North Macedonia (2020)
Working Paper: Can Subsidized Employment Tackle Long-Term Unemployment? Experimental Evidence from North Macedonia (2020)
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