[Journal:] IZA Journal of Labor Policy [ISSN:] 2193-9004 [Volume:] 2 [Year:] 2013 [Pages:] 1-23
This paper examines the role of non-wage cost rigidities in slowing down employment creation by assessing the effect of a policy aimed at fostering employment for women and young men introduced in Turkey in 2008. Exploiting a difference-in-difference-in differences strategy, I assess the employment effect of the reduction in the employer contribution share of the social security premiums. The results, net of the recent crisis effect, suggest a positive effect of the reduction in non-wage costs on employment creation for the targeted group (women) shortly after the announcement of the policy.
Social security contribution cut Employment creation Policy evaluation