IDEAS home Printed from https://ideas.repec.org/p/has/bworkp/1503.html
   My bibliography  Save this paper

Evaluating the impact of a well - targeted wage subsidy using administrative data

Author

Listed:
  • Zsombor Cseres-Gergely

    () (Institute of Economics, Center for Economic and Regional Studies, Hungarian Academy of Sciences)

  • Agota Scharle

    () (Budapest Institute)

  • Arpad Foldessy

    (University College London)

Abstract

The paper measures the impact of a wage subsidy for long term unemployed workers, using a large administrative dataset from Hungary. While such subsidies are often promoted as an efficient way to speed up the recovery of the economy or to increase demand for low skilled workers, existing evidence on their employment effects is somewhat inconclusive, especially in the case of transition economies. We examine employment outcomes in various model specifications. Results show a significant impact for men aged over 50, which is driven by the subgroup of those with lower secondary education. The subsidy for jobseekers with at least secondary education and aged over 50 is cost effective for men. We also present some evidence that this is not merely caused by substitution across various sub-groups of jobseekers.

Suggested Citation

  • Zsombor Cseres-Gergely & Agota Scharle & Arpad Foldessy, 2015. "Evaluating the impact of a well - targeted wage subsidy using administrative data," Budapest Working Papers on the Labour Market 1503, Institute of Economics, Centre for Economic and Regional Studies.
    • Handle: RePEc:has:bworkp:1503
    as

    Download full text from publisher

    File URL: http://www.econ.core.hu/file/download/bwp/bwp1503.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brown, Alessio J.G. & Merkl, Christian & Snower, Dennis J., 2011. "Comparing the effectiveness of employment subsidies," Labour Economics, Elsevier, vol. 18(2), pages 168-179, April.
    2. David Card & Jochen Kluve & Andrea Weber, 2010. "Active Labour Market Policy Evaluations: A Meta-Analysis," Economic Journal, Royal Economic Society, vol. 120(548), pages 452-477, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gabriel Machlica, 2017. "Enhancing skills to boost growth in Hungary," OECD Economics Department Working Papers 1364, OECD Publishing.
    2. Svraka, András, 2018. "The Effect of Labour Cost Reduction on Employment of Vulnerable Groups — Evaluation of the Hungarian Job Protection Act," MPRA Paper 88234, University Library of Munich, Germany.
    3. Kevin Hollenbeck, 2015. "Promoting Retention or Reemployment of Workers After a Significant Injury or Illness," Mathematica Policy Research Reports 99caa302888a4be68d16d276c, Mathematica Policy Research.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alessio Brown & Johannes Koettl, 2015. "Active labor market programs - employment gain or fiscal drain?," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-36, December.
    2. Anders Gustafsson, 2019. "Busy doing nothing: why politicians implement inefficient policies," Constitutional Political Economy, Springer, vol. 30(3), pages 282-299, September.
    3. Christoph Ehlert & Jochen Kluve & Sandra Schaffner, 2012. "Temporary work as an active labor market policy: Evaluating an innovative program for disadvantaged youths," Economics Bulletin, AccessEcon, vol. 32(2), pages 1765-1773.
    4. International Monetary Fund, 2015. "Central and Eastern Europe; New Member States (NMS) Policy Forum, 2014, Selected Issues Paper," IMF Staff Country Reports 2015/098, International Monetary Fund.
    5. Jeff Borland, 2014. "Dealing with unemployment: What should be the role of labour market programs?," Evidence Base, Australia and New Zealand School of Government, vol. 2014(4), pages 1-21, December.
    6. María laura Alzúa & Guillermo Cruces & Carolina Lopez, 2016. "Long-Run Effects Of Youth Training Programs: Experimental Evidence From Argentina," Economic Inquiry, Western Economic Association International, vol. 54(4), pages 1839-1859, October.
    7. Phillips, David C., 2014. "Getting to work: Experimental evidence on job search and transportation costs," Labour Economics, Elsevier, vol. 29(C), pages 72-82.
    8. Lechthaler, Wolfgang & Merkl, Christian & Snower, Dennis J., 2010. "Monetary persistence and the labor market: A new perspective," Journal of Economic Dynamics and Control, Elsevier, vol. 34(5), pages 968-983, May.
    9. Dennis J. Snower & Alessio J. G. Brown & Christian Merkl, 2009. "Globalization and the Welfare State: A Review of Hans-Werner Sinn's Can Germany Be Saved?," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 136-158, March.
    10. Fidrmuc, Jarko & Lind, Ronja, 2020. "Macroeconomic impact of Basel III: Evidence from a meta-analysis," Journal of Banking & Finance, Elsevier, vol. 112(C).
    11. Cain Polidano & Justin van de Ven & Sarah Voitchovsky, 2017. "The Power of Self-Interest: Effects of Education and Training Entitlements in Later-Life," Melbourne Institute Working Paper Series wp2017n12, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    12. Havranek, Tomas & Irsova, Zuzana, 2011. "Estimating vertical spillovers from FDI: Why results vary and what the true effect is," Journal of International Economics, Elsevier, vol. 85(2), pages 234-244.
    13. Pfister, Mona & Lorenz, Svenja & Zwick, Thomas, 2018. "Calculation of pension entitlements in the sample of integrated labour market biographies (SIAB)," FDZ Methodenreport 201801_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    14. Bruno Crépon & Marc Gurgand & Thierry Kamionka & Laurent Lequien, 2013. "Is Counseling Welfare Recipients Cost-Effective ? Lessons from a Random Experiment," Working Papers 2013-01, Center for Research in Economics and Statistics.
    15. Røed, Knut, 2012. "Active Unemployment Insurance," IZA Policy Papers 41, Institute of Labor Economics (IZA).
    16. Koning, Pierre, 2012. "Contracting welfare-to-work services," Economics Letters, Elsevier, vol. 114(3), pages 349-352.
    17. Matthias Collischon & Kamila Cygan-Rehm & Regina T. Riphahn, 2018. "Employment Effects of Payroll Tax Subsidies," CESifo Working Paper Series 7111, CESifo.
    18. Bruno Crépon & Esther Duflo & Marc Gurgand & Roland Rathelot & Philippe Zamora, 2013. "Do Labor Market Policies have Displacement Effects? Evidence from a Clustered Randomized Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 128(2), pages 531-580.
    19. Gerard J. van den Berg & Antoine Bozio & Mónica Costa Dias, 2020. "Policy discontinuity and duration outcomes," Quantitative Economics, Econometric Society, vol. 11(3), pages 871-916, July.
    20. Duranton, Gilles & Venables, Anthony J, 2018. "Place-Based Policies for Development," CEPR Discussion Papers 12889, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    wage-subsidy; evaluation; older workers;
    All these keywords.

    JEL classification:

    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:has:bworkp:1503. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nora Horvath). General contact details of provider: https://edirc.repec.org/data/iehashu.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.