Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/278851 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16153
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We use a regression discontinuity design and difference-in-differences estimators to estimate the impact of a one-shot hiring subsidy for 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, they substitute private for public and self-employment; thus, overall employment does not increase but is still better paid. For high school dropouts, no persistent gains emerge. Moreover, the neighboring employment hub of Luxembourg induces a complete deadweight loss near the border.
Subjects: 
hiring subsidies
youth unemployment
low-educated
regression discontinuity design
difference-in-differences
spillover effects
JEL: 
C21
J08
J23
J24
J64
J68
J61
Document Type: 
Working Paper

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