Hiring subsidies for low-educated unemployed youths are ineffective in a tight labor market

Muriel Dejemeppe, Matthieu Delpierre and Mathilde Pourtois
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Mathilde Pourtois: UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)

No 2024009, LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: We evaluate the impact of hiring subsidies for unemployed jobseekers in Wallonia, the French-speaking region in the south of Belgium. The special feature of these subsidies is that they are more readily available for low-educated youths, who are eligible from registration as a jobseeker or a few months later. In contrast, others must wait 12 months to be eligible. We exploit this difference in a regression discontinuity design and show that earlier access to subsidies does not enhance the job finding rate of the target group. We attribute the lack of effect to the pre-pandemic tightening of the labor market.

Keywords: Hiring subsidies; Youth unemployment; Low-educated; Regression discontinuity design; Labor market tightness (search for similar items in EconPapers)
JEL-codes: C21 J08 J23 J24 J38 (search for similar items in EconPapers)
Pages: 38
Date: 2024-06-26
New Economics Papers: this item is included in nep-lab
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Working Paper: Hiring subsidies for low-educated unemployed youths are ineffective in a tight labor market (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvir:2024009

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