Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/177052 
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers No. 11248
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper analyzes the effectiveness of hiring credits. Using comprehensive administrative data, we show that the French hiring credit, implemented during the Great Recession, had significant positive employment effects and no effects on wages. Relying on the quasi-experimental variation in labor cost triggered by the hiring credit, we estimate a structural search and matching model. Simulations of counterfactual policies show that the effectiveness of the hiring credit relied to a large extent on three features: it was non-anticipated, temporary and targeted at jobs with rigid wages. We estimate that the cost per job created by permanent hiring credits, either countercyclical or time-invariant, in an environment with flexible wages would have been much higher.
Subjects: 
hiring credit
labor demand
search and matching model
JEL: 
C31
C93
J6
Document Type: 
Working Paper

Files in This Item:
File
Size
688.8 kB





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