Permanent Wage Cost Subsidies for Older Workers. An Effective Tool for Increasing Working Time and Postponing Early Retirement?
(2015) , 43 pages
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- Authors
- Abstract
- In several OECD countries age-targeted wage subsidies have been introduced to increase the employment of older workers, but evidence on their effectiveness is scarce. This paper examines the effects of a permanent wage cost subsidy in Belgium on the employment rate, working time and hourly wage. We estimate these effects by integrating Inverse Probability Weighting in a, possibly trend-adjusted, Difference-in-Differences of endogenously sampled repeated cross sections. We find small positive short-run impacts on working time and larger ones on the employment rate, but only for employees at high risk of leaving to early retirement. The wage is not affected.
- Affiliations
University of Milan-Bicocca and Catholic University of the Sacred Heart DEFAP Graduate School IZA (Bonn) - CESIfo (Munich) - Ghent University Faculty of Economics and Business Administration, SHERPPA
Citations
Albanese, A., & Cockx, B. (2015). Permanent Wage Cost Subsidies for Older Workers. An Effective Tool for Increasing Working Time and Postponing Early Retirement? (IRES Discussion Papers 2015-06). https://hdl.handle.net/2078.5/194792