Hiring subsidies for low-educated unemployed youths are ineffective in a tight labor market
(2024) , 38 pages
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- 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.
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Citations
Dejemeppe, M., Delpierre, M., & Pourtois, M. (2024). Hiring subsidies for low-educated unemployed youths are ineffective in a tight labor market (LIDAM Discussion Paper IRES 2024/09). https://hdl.handle.net/2078.5/217066