Please use this identifier to cite or link to this item:
Cahuc, Pierre
Carcillo, Stéphane
Le Barbanchon, Thomas
Year of Publication: 
Series/Report no.: 
IZA Discussion Papers 8330
This paper evaluates the impact of an unexpected temporary hiring credit targeted at workers paid below 1.6 times the minimum wage in firms with less than 10 employees in France from December 2008 to December 2009. Using rich administrative data covering all French firms, we find that the program has had a strong and rapid impact on employment. The net cost per job created for the government was around zero. The employment effect was stronger in areas where recruitment was easier. Although the hiring credit was not conditional on net job creation, it did not increase churning of workers. Nevertheless, we estimate that a credit conditional on net job creation above the employment growth threshold of -1%, would have maximized job creation, and created about 4 times more jobs, at constant budget, provided that take-up had remained the same.
labor demand
hiring credit
Document Type: 
Working Paper

Files in This Item:
614.71 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.