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Wage Subsidies and Hiring Chances for the Disabled: Some Causal Evidence

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  • Baert, Stijn

    (Ghent University)

Abstract

We evaluate the effectiveness of wage subsidies as a policy instrument to integrate disabled individuals into the labour market. To identify causal effects, we conduct a large-scale field experiment in Belgium. Our results show that the likelihood of a disabled candidate receiving a positive response to a job application is not positively influenced by revealing entitlement to the Flemish Supporting Subsidy.

Suggested Citation

  • Baert, Stijn, 2014. "Wage Subsidies and Hiring Chances for the Disabled: Some Causal Evidence," IZA Discussion Papers 8318, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp8318
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    Cited by:

    1. Charles Bellemare & Marion Goussé & Guy Lacroix & Steeve Marchand, 2017. "Physical Disability and Labor Market Discrimination: Evidence from a Field Experiment," Cahiers de recherche 1703, Chaire de recherche Industrielle Alliance sur les enjeux économiques des changements démographiques.
    2. L'Horty, Yannick & Mahmoudi, Naomie & Petit, Pascale & Wolff, François-Charles, 2022. "Is disability more discriminatory in hiring than ethnicity, address or gender? Evidence from a multi-criteria correspondence experiment," Social Science & Medicine, Elsevier, vol. 303(C).
    3. Mason Ameri & Lisa Schur & Meera Adya & F. Scott Bentley & Patrick McKay & Douglas Kruse, 2018. "The Disability Employment Puzzle: A Field Experiment on Employer Hiring Behavior," ILR Review, Cornell University, ILR School, vol. 71(2), pages 329-364, March.
    4. Gaddis, S. Michael, 2018. "An Introduction to Audit Studies in the Social Sciences," SocArXiv e5hfc, Center for Open Science.
    5. Leduc, Elisabeth & Tojerow, Ilan, 2020. "Subsidizing Domestic Services as a Tool to Fight Unemployment: Effectiveness and Hidden Costs," IZA Discussion Papers 13544, Institute of Labor Economics (IZA).
    6. Sergi Jiménez-Martín & Arnau Juanmarti Mestres & Judit Vall Castello, 2017. "Hiring subsidies for people with disabilities: Do they work?," Policy Papers 2017-11, FEDEA.
    7. Stijn Baert & Olivier Rotsaert & Dieter Verhaest & Eddy Omey, 2016. "Student Employment and Later Labour Market Success: No Evidence for Higher Employment Chances," Kyklos, Wiley Blackwell, vol. 69(3), pages 401-425, August.
    8. Stijn Baert & Dieter Verhaest, 2019. "Unemployment or Overeducation: Which is a Worse Signal to Employers?," De Economist, Springer, vol. 167(1), pages 1-21, March.
    9. Ali M. Ahmed & Elisabeth Lång, 2017. "The employability of ex-offenders: a field experiment in the Swedish labor market," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 6(1), pages 1-23, December.
    10. Namingit, Sheryll & Blankenau, William & Schwab, Benjamin, 2021. "Sick and tell: A field experiment analyzing the effects of an illness-related employment gap on the callback rate," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 865-882.
    11. Nikolay Angelov & Marcus Eliason, 2018. "Wage subsidies targeted to jobseekers with disabilities: subsequent employment and disability retirement," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-37, December.
    12. Kevin F. Hallock & Xin Jin & Michael Waldman, 2022. "The total compensation gap, wage gap and benefit gap between workers with and without a disability," British Journal of Industrial Relations, London School of Economics, vol. 60(1), pages 3-31, March.
    13. David Neumark, 2018. "Experimental Research on Labor Market Discrimination," Journal of Economic Literature, American Economic Association, vol. 56(3), pages 799-866, September.
    14. Nabanita Datta Gupta & Mona Larsen & Lars Thomsen, 2015. "Do wage subsidies for disabled workers reduce their non-employment? - evidence from the Danish Flexjob scheme," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-26, December.
    15. Judit Krekó, 2019. "Effect of employment tax incentives: the case of disability quota in Hungary," CEU Working Papers 2019_1, Department of Economics, Central European University.
    16. Louise Philomene Mbaye, 2018. "Handicap et discriminations dans l'accès à l'emploi : un testing dans les établissements culturels," Working Papers halshs-01878461, HAL.
    17. Amanda Gaulke, 2021. "Individual and family labor market impacts of chronic diseases," IZA World of Labor, Institute of Labor Economics (IZA), pages 482-482, January.
    18. Louise Philomène Mbaye, 2018. "Handicap et discriminations dans l’accès à l’emploi : un testing dans les établissements culturels," TEPP Research Report 2018-04, TEPP.
    19. Sergi Jiménez-Martín & Arnau Juanmartí Mestres & Judit Vall Castelló, 2019. "Hiring subsidies for people with a disability: do they work?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(5), pages 669-689, July.
    20. Douglas Kruse & Lisa Schur & Sean Rogers & Mason Ameri, 2018. "Why Do Workers with Disabilities Earn Less? Occupational Job Requirements and Disability Discrimination," British Journal of Industrial Relations, London School of Economics, vol. 56(4), pages 798-834, December.
    21. Baert, Stijn, 2017. "Hiring Discrimination: An Overview of (Almost) All Correspondence Experiments Since 2005," IZA Discussion Papers 10738, Institute of Labor Economics (IZA).
    22. Krekó, Judit & Telegdy, Álmos, 2022. "The Effects of a Disability Employment Quota When Compliance Is Cheaper than Defiance," IZA Discussion Papers 15726, Institute of Labor Economics (IZA).
    23. Sylvain Chareyron & Yannick L'Horty & Philomène Mbaye & Pascale Petit, 2022. "Impacts of quota policy and employer obligation to adapt workstations on discrimination against people with disabilities: Lessons from an experiment," TEPP Working Paper 2022-17, TEPP.
    24. Maryam Dilmaghani, 2022. "The link between smoking, drinking and wages: Health, workplace social capital or discrimination?," Industrial Relations Journal, Wiley Blackwell, vol. 53(2), pages 160-183, March.

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    More about this item

    Keywords

    wage subsidies; disability; labour market policy evaluation; discrimination;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)

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