Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/110709
Authors: 
Albanese, Andrea
Cockx, Bart
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers 8988
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.
Subjects: 
wage cost subsidies
older workers
weighted Difference-in-Differences
endogenous sampling
JEL: 
J14
C21
J18
J3
Document Type: 
Working Paper

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