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

Alex Armand, Pedro Carneiro, Federico Tagliati and Yiming Xia ()
Additional contact information
Yiming Xia: University College London

No 13478, IZA Discussion Papers from Institute of Labor Economics (IZA)

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)
Pages: 68 pages
Date: 2020-07
New Economics Papers: this item is included in nep-eur and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://docs.iza.org/dp13478.pdf (application/pdf)

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)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp13478

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().