Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/264929
Year of Publication: 
2022
Series/Report no.: 
GLO Discussion Paper No. 1168
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
We use (donut) regression discontinuity design and difference-in-differences estimators to estimate the impact of a one-shot hiring subsidy targeted at low-educated unemployed youths during the Great Recession recovery in Belgium. The subsidy increases job-finding in the private sector by 10 percentage points within one year of unemployment. Six years later, high school graduates accumulated 2.8 quarters more private employment. However, because they substitute private for public and self-employment, overall employment does not increase but is still better paid. For high school dropouts, no persistent gains emerge. Moreover, the neighboring attraction pole of Luxembourg induces a complete deadweight near the border.
Subjects: 
Hiring subsidies
youth unemployment
cross-border employment
regression discontinuity design
difference-in-differences
spillover effects
displacement
JEL: 
C21
J08
J23
J24
J64
J68
J61
Document Type: 
Working Paper

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