Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/307965 
Year of Publication: 
2024
Series/Report no.: 
GLO Discussion Paper No. 1546
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
Despite hiring credits being a long-standing labor market policy, evidence of their impact at the firm level is limited. This paper contributes to the existing literature by providing an empirical analysis of an untargeted hiring credits policy introduced in Italy in 2015. We implement the Synthetic Control Difference in Differences method using administrative employer-employee data. The results show an increase in employment but at the same time a reduction in capital intensity, labor productivity and workforce quality. Furthermore, the reduction in labor costs for involved firms is not associated with an increase in their profitability.
Subjects: 
hiring credits
synthetic difference-in-differences
firm performance
JEL: 
J21
J08
D22
Document Type: 
Working Paper

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