Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/147868
Authors: 
Webb, Matthew D.
Warman, Casey
Sweetman, Arthur
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers 10182
Abstract: 
Canada's Youth Hires program was a targeted employment subsidy that rebated employment insurance premiums to employers with net increases in insurable earnings for youth aged 18-24. Using a difference-in-differences approach, in each of two datasets statistically and economically significant employment impacts are observed. Most of the evidence suggests that the 2-2.4 weeks of increased employment resulted from an aggregate reduction in those not in the labour force, with at most a modest change in the unemployment rate. Many estimated effects are larger for males than females. Notably, strong evidence of displacement (substitution away from slightly older non-subsidized workers) is not observed. However, there may be a small reduction in full-time schooling for the targeted group.
Subjects: 
youth unemployment
displacement
unemployment insurance
unemployment
targeted tax policy
JEL: 
J23
J65
J68
Document Type: 
Working Paper

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