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Evaluating the Impact of the Post-2008 Employment Subsidy Program in Turkey

Binnur Balkan (), Yusuf Baskaya () and Semih Tumen ()

Working Papers from Research and Monetary Policy Department, Central Bank of the Republic of Turkey

Abstract: The Turkish government started an employment subsidy program in 2008 to generate new employment for younger men and all women, which are the relatively disadvantaged groups in the Turkish labor market. In this paper, we use a nationally representative micro-level dataset and a difference-in-differences approach to evaluate the effects of this subsidy program. Our results indicate that, on aggregate, the subsidy program seems to be ineffective in increasing the employment probabilities of those individuals in the target group. However, when heterogeneity is accounted for by dividing the treatment group into several sub-groups, we observe that the program has been notably effective on some of those sub-groups. In particular, we find that the increase in employment probability is more pronounced for older women, while a weaker positive effect is observed for younger women and almost no effect is detected for younger men. The effect on older women is subject to further heterogeneity : the subsidy program has increased the employment probabilities of low-educated and/or low-skill older women rather than the high-educated and/or high-skill ones.

Keywords: Employment subsidies; treatment effects; difference-in-differences; Turkish micro data. (search for similar items in EconPapers)
JEL-codes: C21 H24 J21 J68 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-ara, nep-cwa, nep-lab and nep-lma
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Working Paper: Evaluating the Impact of the Post-2008 Employment Subsidy Program in Turkey (2016) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:tcb:wpaper:1414

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