Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/298773 
Year of Publication: 
2022
Citation: 
[Journal:] IZA Journal of Labor Policy [ISSN:] 2193-9004 [Volume:] 12 [Issue:] 1 [Article No.:] 3 [Year:] 2022 [Pages:] 1-38
Publisher: 
Sciendo, Warsaw
Abstract: 
Hiring subsidies are widely used to create (stable) employment for the long-term unemployed. This paper exploits the abolition of a hiring subsidy targeted at long-term unemployed jobseekers older than 45 years of age in Belgium to evaluate its effectiveness in the short and medium run. Based on a triple-difference methodology, the hiring subsidy is shown to increase the job-finding rate by 13% without any evidence of spillover effects. This effect is driven by a positive effect on individuals with at least a bachelor's degree. However, the hiring subsidy mainly creates temporary short-lived employment: eligible jobseekers are not more likely to find employment that lasts at least 12 consecutive months compared with ineligible jobseekers.
Subjects: 
hiring subsidies
long-term unemployment
prime-aged jobseekers
triple difference
temporary help agencies
JEL: 
H22
J08
J18
J23
J38
J64
J65
J68
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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