Muriel Dejemeppe

IRES/LIDAM

will give a presentation on

Hiring subsidies for disadvantaged youth in expansions. Short- and long-term net impact on employment

Abstract:

The aim of the paper is to evaluate the employment effects of hiring subsidies targeted at young job seekers with at most a high school degree in Belgium after the Great Recession of 2008-2009. Particular attention is paid on evaluating the subsidy effect not only on short-term job finding rates but also on longer-term labor outcomes. The benchmark treatment effects are estimated through a (donut) Regression Discontinuity Design exploiting an age threshold. The subsidies created new job opportunities in the short run. However, they seem to have a long-lasting effect on labor market integration for the high school graduates only.

co-authored with: Andrea Albanese (LISER, Luxembourg) and Bart Cockx (UGent)