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The use of permanent contracts across Spanish regions: Do regional wage subsidies work?

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Author Info

  • Yolanda F. Rebollo

    (Universidad Pablo de Olavide)

  • J. Ignacio Pérez

    (Centro de Estudios Andaluces)

Abstract

This article evaluates the effectiveness of regional wage subsidies to foster permanent employment using information gathered from the “Muestra Continua de Vidas Laborales”. This dataset, which is used here for the first time as a source for evaluating Spanish labour market policy, offers a complete employment history for each individual, with no aggregation bias. The policy analyzed consists of a one-time subsidy offered by some Spanish regions for new permanent contracts signed for certain fixed-term employees and unemployed workers. Because our policy variable presents individual, regional and temporal variation, we apply a triple difference estimator to identify the average treatment effect of this policy. We conclude that the outflow into permanent employment of eligible workers improves only minimally under this policy. Nevertheless, the incidence is relatively greater for temporary workers than for unemployed ones and is also larger for younger and middle-aged female workers.

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Bibliographic Info

Paper provided by Centro de Estudios Andaluces in its series Economic Working Papers at Centro de Estudios Andaluces with number E2008/09.

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Length: 45 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:cea:doctra:e2008_09

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Keywords: Difference-in-difference-in-difference; Causal Evaluation Analysis; Regional Wage Subsidies;

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References

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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Hora de recordarle al Gobierno los parados y los temporales
    by Samuel Bentolila in Nada Es Gratis on 2011-12-23 07:00:39
  2. Políticas activas de empleo: qué funciona y qué se consigue
    by Samuel Bentolila in Nada Es Gratis on 2013-11-12 06:55:33
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Daniel Fernández-Kranz & Núria Rodríguez-Planas, 2010. "The Part-Time Pay Penalty in a Segmented Labor Market," UFAE and IAE Working Papers, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) 825.10, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  2. Inmaculada Garcia & Colin Green & Maria Navarro Paniagua, 2012. "New Estimates of the Effect of Temporary Employment on Absenteeism," Working Papers 24151321, Lancaster University Management School, Economics Department.
  3. Escudero, Veronica, 2014. "Are active labour market policies effective in activating and integrating low-skilled individuals? An international comparison," MPRA Paper 55319, University Library of Munich, Germany.
  4. Fernández-Kranz, Daniel & Lacuesta, Aitor & Rodríguez-Planas, Núria, 2010. "Chutes and Ladders: Dual Tracks and the Motherhood Dip," IZA Discussion Papers 5403, Institute for the Study of Labor (IZA).
  5. Cervini, María & Ramos, Xavier & Silva, José I., 2011. "Wage effects of non-wage labour costs," MPRA Paper 34033, University Library of Munich, Germany.
  6. Inmaculada Cebrián & Gloria Moreno & Luis Toharia, 2011. "La estabilidad laboral y los programas de fomento de la contratación indefinida," Hacienda Pública Española, IEF, IEF, vol. 198(3), pages 103-127, September.
  7. Samuel Bentolila & Juan J. Dolado & Juan F. Jimeno, 2012. "The New New Labour Market Reform in Spain: Objectives, Instruments, and Shortcomings," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, Ifo Institute for Economic Research at the University of Munich, vol. 10(2), pages 03-07, 08.
  8. Vall Castello, Judit, 2012. "Promoting employment of disabled women in Spain; Evaluating a policy," Labour Economics, Elsevier, Elsevier, vol. 19(1), pages 82-91.
  9. J. Ignacio García-Pérez & Ioana Marinescu & Judit Vall Castello, 2014. "Can Fixed-Term Contracts Put Low Skilled Youth on a Better Career Path? Evidence from Spain," Working Papers 2014-08, FEDEA.
  10. J. Ignacio García‐Pérez & Fernando Muñoz‐Bullón, 2011. "Transitions into Permanent Employment in Spain: An Empirical Analysis for Young Workers," British Journal of Industrial Relations, London School of Economics, London School of Economics, vol. 49(1), pages 103-143, March.
  11. Yolanda Rebollo Sanz, 2009. "Landing a Permanent Contract: Do Job Interruptions and Employer Diversification Matter?," Working Papers 09.07, Universidad Pablo de Olavide, Department of Economics.
  12. Mario García-Ferreira & Ernesto Villanueva, 2007. "Employment risk and household formation: evidence from differences in firing costs," Banco de Espa�a Working Papers, Banco de Espa�a 0737, Banco de Espa�a.
  13. Sergi Jiménez Martín & Judit Vall Castello, 2009. "Business Cycle Effects on Labour Force Transitions for Older People in Spain," Working Papers 2009-25, FEDEA.
  14. Yolanda Rebollo Sanz & J. Ignacio García-Pérez, 2009. "Do wage subsidies affect the subsequent employment stability of permanent workers?: the case of Spain," Working Papers 09.18, Universidad Pablo de Olavide, Department of Economics.
  15. Ildefonso Mendez, 2013. "Promoting permanent employment: lessons from Spain," SERIEs, Spanish Economic Association, Spanish Economic Association, vol. 4(2), pages 175-199, June.
  16. Cristina Barceló & Ernesto Villanueva, 2010. "The response of household wealth to the risk of losing the job: evidence from differences in firing costs," Banco de Espa�a Working Papers, Banco de Espa�a 1002, Banco de Espa�a.
  17. J. Ignacio García Pérez & Victoria Osuna, 2012. "Dual Labour Markets and the Tenure Distribution: Reducing Severance Pay or Introducing a Single Contract?," Working Papers 2012-09, FEDEA.

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