Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/245506 
Year of Publication: 
2021
Series/Report no.: 
CESifo Working Paper No. 9325
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
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 over 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 spill-over effects. This effect is driven by a positive effect on individuals with at least a bachelor's degree. However, the hiring subsidy mainly created temporary short-lived employment: eligible jobseekers were not more likely to find employment that lasted at least twelve consecutive months than 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
Document Type: 
Working Paper
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