The effectiveness of hiring credits / Pierre Cahuc (Crest-Ensae, Ecole Polytechnique, IZA and CEPR), Stéphane Carcillo (OECD, Sciences Po and IZA), Thomas Le Barbanchon (Bocconi University, CEPR, IGIER and IZA) ; IZA Institute of Labor Economics
VerfasserCahuc, Pierre ; Carcillo, Stéphane ; Le Barbanchon, Thomas
KörperschaftForschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, December 2017
Elektronische Ressource
Umfang1 Online-Ressource (90 Seiten) : Diagramme
SerieDiscussion paper ; no. 11248
 Das Dokument ist öffentlich zugänglich im Rahmen des deutschen Urheberrechts.
The effectiveness of hiring credits [0.67 mb]
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This paper analyzes the effectiveness of hiring credits. Using comprehensive administrative data, we show that the French hiring credit, implemented during the Great Recession, had significant positive employment effects and no effects on wages. Relying on the quasi-experimental variation in labor cost triggered by the hiring credit, we estimate a structural search and matching model. Simulations of counterfactual policies show that the effectiveness of the hiring credit relied to a large extent on three features: it was nonanticipated, temporary and targeted at jobs with rigid wages. We estimate that the cost per job created by permanent hiring credits, either countercyclical or time-invariant, in an environment with flexible wages would have been much higher.