Lunchseminar in Economics: Hiring subsidies for disadvantaged youth after the Great Recession. Short- and long-term net impact on employment

Abstract

The aim of the analysis is to evaluate the employment effects of hiring subsidies targeted at young job seekers with at most a high school degree in Belgium during the two years that follow the Great Recession of 2008-2009. Particular attention is paid on evaluating the subsidy effect not only on short-term job finding rates but also on longer-term labor outcomes, including the probability of being in unsubsidised employment. To estimate these effects, we implement a Donut Regression Discontinuity Design (RDD) that exploit age eligibility thresholds. Results are contrasted across schooling groups. For both high school dropouts and graduates, the subsidies created new job opportunities in the short run which seem to last for several months. However, the subsidies seem to have a long-lasting effect on labor market integration for the high school graduates only.

Professor Muriel Dejemeppe is professor of economics at UCLouvain (appointed in 2005) and researcher at IRES (LIDAM). Muriel is specialised in microeconometrics, labor economics and the evaluation of labor market policies. She teaches introductory econometrics, micro-econometrics, and labour economics to bachelor and master students. She is fellow of the Global Labor Organisation and Board member of the “Société royale d’Economie Politique de Belgique”. She is also co-editor of the first Belgian scientific review of popular science in economics, Regards économiques.

Registration

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