IDEAS home Printed from https://ideas.repec.org/p/rug/rugwps/14-886.html
   My bibliography  Save this paper

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

Author

Listed:
  • STIJN BAERT

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

  • Stijn Baert, 2014. "Wage Subsidies and Hiring Chances for the Disabled: Some Causal Evidence," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 14/886, Ghent University, Faculty of Economics and Business Administration.
    • Handle: RePEc:rug:rugwps:14/886
    as

    Download full text from publisher

    File URL: http://wps-feb.ugent.be/Papers/wp_14_886.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Gerfin, Michael & Lechner, Michael & Steiger, Heidi, 2005. "Does subsidised temporary employment get the unemployed back to work? Aneconometric analysis of two different schemes," Labour Economics, Elsevier, vol. 12(6), pages 807-835, December.
    2. Douglas A. Webber & Melissa J. Bjelland, 2015. "The Impact of Work‐Limiting Disability on Labor Force Participation," Health Economics, John Wiley & Sons, Ltd., vol. 24(3), pages 333-352, March.
    3. P. A. Riach & J. Rich, 2002. "Field Experiments of Discrimination in the Market Place," Economic Journal, Royal Economic Society, vol. 112(483), pages 480-518, November.
    4. Gannon, Brenda & Munley, Margaret, 2009. "Age and disability: Explaining the wage differential," Social Science & Medicine, Elsevier, vol. 69(1), pages 47-55, July.
    5. Magee, William, 2004. "Effects of illness and disability on job separation," Social Science & Medicine, Elsevier, vol. 58(6), pages 1121-1135, March.
    6. Cain Polidano & Ha Vu, 2012. "Labour market impacts from disability onset," ANU Working Papers in Economics and Econometrics 2012-583, Australian National University, College of Business and Economics, School of Economics.
    7. Rafael Lalive & Jean-Philippe Wuellrich & Josef Zweimüller, 2013. "Do Financial Incentives Affect Firms’ Demand For Disabled Workers?," Journal of the European Economic Association, European Economic Association, vol. 11(1), pages 25-58, February.
    8. Susan L. Ettner & Richard G. Frank & Ronald C. Kessler, 1997. "The Impact of Psychiatric Disorders on Labor Market Outcomes," NBER Working Papers 5989, National Bureau of Economic Research, Inc.
    9. Marjorie L. Baldwin & Steven C. Marcus, 2014. "The Impact Of Mental And Substance‐Use Disorders On Employment Transitions," Health Economics, John Wiley & Sons, Ltd., vol. 23(3), pages 332-344, March.
    10. Peter A. Riach & Judith Rich, 2004. "Deceptive Field Experiments of Discrimination: Are they Ethical?," Kyklos, Wiley Blackwell, vol. 57(3), pages 457-470, August.
    11. Nick Drydakis, 2010. "Health impairments and labour market outcomes," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 11(5), pages 457-469, October.
    12. Michele Campolieti & Harry Krashinsky, 2006. "Disabled Workers and Wage Losses: Some Evidence from Workers with Occupational Injuries," ILR Review, Cornell University, ILR School, vol. 60(1), pages 120-138, October.
    13. David Neumark, 2012. "Detecting Discrimination in Audit and Correspondence Studies," Journal of Human Resources, University of Wisconsin Press, vol. 47(4), pages 1128-1157.
    14. Marjorie L. Baldwin & Chung Choe, 2014. "Wage Discrimination Against Workers with Sensory Disabilities," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 53(1), pages 101-124, January.
    15. Snower, Dennis J, 1994. "Converting Unemployment Benefits into Employment Subsidies," American Economic Review, American Economic Association, vol. 84(2), pages 65-70, May.
    16. Drydakis, Nick, 2009. "Sexual orientation discrimination in the labour market," Labour Economics, Elsevier, vol. 16(4), pages 364-372, August.
    17. Petit, Pascale, 2007. "The effects of age and family constraints on gender hiring discrimination: A field experiment in the French financial sector," Labour Economics, Elsevier, vol. 14(3), pages 371-391, June.
    18. Marianne Bertrand & Sendhil Mullainathan, 2004. "Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination," American Economic Review, American Economic Association, vol. 94(4), pages 991-1013, September.
    19. Deuchert, Eva & Kauer, Lukas, 2013. "Hiring subsidies for people with a disability: Helping or hindering? - Evidence from a small scale social field experiment," Economics Working Paper Series 1335, University of St. Gallen, School of Economics and Political Science.
    20. Brian Bell & Richard Blundell & John Reenen, 1999. "Getting the Unemployed Back to Work: The Role of Targeted Wage Subsidies," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 6(3), pages 339-360, August.
    21. Lawrence F. Katz, 1996. "Wage Subsidies for the Disadvantaged," NBER Working Papers 5679, National Bureau of Economic Research, Inc.
    22. Kangasharju, Aki, 2005. "Do Wages Subsidies Increase Employment in Subsidised Firms?," Discussion Papers 378, VATT Institute for Economic Research.
    23. Dan-Olof Rooth, 2009. "Obesity, Attractiveness, and Differential Treatment in Hiring: A Field Experiment," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
    24. Ravaud, Jean-François & Madiot, Béatrice & Ville, Isabelle, 1992. "Discrimination towards disabled people seeking employment," Social Science & Medicine, Elsevier, vol. 35(8), pages 951-958, October.
    25. Mandel Michael & Anita Bálint & Barbara Lovász & László Gulácsi & Bálint Strbák & Petra Golovics & Klaudia Farkas & Zsuzsanna Kürti & Blanka Szilágyi & Anna Mohás & Tamás Molnár & Péter Lakatos, 2014. "Work disability and productivity loss in patients with inflammatory bowel diseases in Hungary in the era of biologics," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 15(1), pages 121-128, May.
    26. Ursula Jaenichen & Gesine Stephan, 2011. "The effectiveness of targeted wage subsidies for hard-to-place workers," Applied Economics, Taylor & Francis Journals, vol. 43(10), pages 1209-1225.
    27. Gary Burtless, 1985. "Are Targeted Wage Subsidies Harmful? Evidence from a Wage Voucher Experiment," ILR Review, Cornell University, ILR School, vol. 39(1), pages 105-114, October.
    28. Eva Frutos & Judit Castello, 2015. "Equal health, equal work? The role of disability benefits in employment after controlling for health status," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(3), pages 329-340, April.
    29. Perry Singleton, 2012. "Insult to Injury: Disability, Earnings, and Divorce," Journal of Human Resources, University of Wisconsin Press, vol. 47(4), pages 972-990.
    30. Michael Mandel & Anita Bálint & Barbara Lovász & László Gulácsi & Bálint Strbák & Petra Golovics & Klaudia Farkas & Zsuzsanna Kürti & Blanka Szilágyi & Anna Mohás & Tamás Molnár & Péter Lakatos, 2014. "Erratum to: Work disability and productivity loss in patients with inflammatory bowel diseases in Hungary in the era of biologics," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 15(1), pages 129-129, May.
    31. Drydakis, Nick, 2009. "Sexual orientation discrimination in the labour market," Labour Economics, Elsevier, vol. 16(4), pages 364-372, August.
    32. Aki Kangasharju, 2007. "Do Wage Subsidies Increase Employment in Subsidized Firms?," Economica, London School of Economics and Political Science, vol. 74(293), pages 51-67, February.
    Full references (including those not matched with items on IDEAS)

    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. Rich, Judy, 2014. "What Do Field Experiments of Discrimination in Markets Tell Us? A Meta Analysis of Studies Conducted since 2000," IZA Discussion Papers 8584, Institute of Labor Economics (IZA).
    2. Baert, Stijn, 2015. "Field experimental evidence on gender discrimination in hiring: Biased as Heckman and Siegelman predicted?," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 9, pages 1-11.
    3. Baert, Stijn & Norga, Jennifer & Thuy, Yannick & Van Hecke, Marieke, 2016. "Getting grey hairs in the labour market. An alternative experiment on age discrimination," Journal of Economic Psychology, Elsevier, vol. 57(C), pages 86-101.
    4. Deuchert, Eva & Kauer, Lukas, 2013. "Hiring subsidies for people with a disability: Helping or hindering? - Evidence from a small scale social field experiment," Economics Working Paper Series 1335, University of St. Gallen, School of Economics and Political Science.
    5. Stijn Baert, 2014. "Career lesbians. Getting hired for not having kids?," Industrial Relations Journal, Wiley Blackwell, vol. 45(6), pages 543-561, November.
    6. Stefan Eriksson & Per Johansson & Sophie Langenskiöld, 2017. "What is the right profile for getting a job? A stated choice experiment of the recruitment process," Empirical Economics, Springer, vol. 53(2), pages 803-826, September.
    7. Baert, Stijn, 2015. "Hiring a Homosexual, Taking a Risk? A Lab Experiment on Employment Discrimination and Risk Aversion," IZA Discussion Papers 9536, Institute of Labor Economics (IZA).
    8. Stijn Baert & Bart Cockx & Niels Gheyle & Cora Vandamme, 2013. "Do Employers Discriminate Less if Vacancies are Difficult to Fill? Evidence from a Field Experiment," CESifo Working Paper Series 4093, CESifo.
    9. Nabanita Datta Gupta & Mona Larsen & Lars Brink Thomsen, 2013. "Do wage subsidies for disabled workers result in deadweight loss? – evidence from the Danish Flexjob scheme," Economics Working Papers 2013-24, Department of Economics and Business Economics, Aarhus University.
    10. Drydakis, Nick, 2011. "Roma Women in Athenian Firms: Do They Face Wage Bias?," IZA Discussion Papers 5732, Institute of Labor Economics (IZA).
    11. David Neumark, 2018. "Experimental Research on Labor Market Discrimination," Journal of Economic Literature, American Economic Association, vol. 56(3), pages 799-866, September.
    12. Button, Patrick & Walker, Brigham, 2020. "Employment discrimination against Indigenous Peoples in the United States: Evidence from a field experiment," Labour Economics, Elsevier, vol. 65(C).
    13. Laetitia Challe & Yannick L'Horty & Pascale Petit & François-Charles Wolff, 2018. "Les discriminations dans l'accès à l'emploi privé et public : les effets de l'origine, de l'adresse, du sexe et de l'orientation sexuelle," Working Papers halshs-01878469, HAL.
    14. Eva O. Arceo-Gomez & Raymundo M. Campos-Vazquez, 2014. "Race and Marriage in the Labor Market: A Discrimination Correspondence Study in a Developing Country," American Economic Review, American Economic Association, vol. 104(5), pages 376-380, May.
    15. Antonio Estache & Elena Ianchovichina & Robert Bacon & Ilhem Salamon, 2013. "Infrastructure and Employment Creation in the Middle East and North Africa," World Bank Publications - Books, The World Bank Group, number 12237, December.
    16. Baert, Stijn, 2017. "Hiring Discrimination: An Overview of (Almost) All Correspondence Experiments Since 2005," GLO Discussion Paper Series 61, Global Labor Organization (GLO).
    17. Baert, By Stijn & Neyt, Brecht & Siedler, Thomas & Tobback, Ilse & Verhaest, Dieter, 2021. "Student internships and employment opportunities after graduation: A field experiment," Economics of Education Review, Elsevier, vol. 83(C).
    18. Eleonora Patacchini & Giuseppe Ragusa & Yves Zenou, 2015. "Unexplored dimensions of discrimination in Europe: homosexuality and physical appearance," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(4), pages 1045-1073, October.
    19. Benjamin Schünemann & Michael Lechner & Conny Wunsch, 2015. "Do Long-Term Unemployed Workers Benefit from Targeted Wage Subsidies?," German Economic Review, Verein für Socialpolitik, vol. 16(1), pages 43-64, February.
    20. Azmat, Ghazala & Petrongolo, Barbara, 2014. "Gender and the labor market: What have we learned from field and lab experiments?," Labour Economics, Elsevier, vol. 30(C), pages 32-40.

    More about this item

    Keywords

    labour market policy evaluation; wage subsidies; disability; 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)

    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:rug:rugwps:14/886. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Nathalie Verhaeghe (email available below). General contact details of provider: https://edirc.repec.org/data/ferugbe.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.