Publications

12 Feb 18

Permanent wage cost subsidies for older workers. An effective tool for employment retention and postponing early retirement?

Authors: ALBANESE Andrea, COCKX Bart.

Online First: 02/02/2018

DOI: http://doi.org/10.1016/j.labeco.2018.01.005

Abstract:

This paper examines the effects of a permanent wage cost subsidy in Belgium on employment retention, working time and hourly wage of older men. To estimate these effects we propose a semi-parametric weighted difference-in-differences estimator that accounts for endogenous stratification in the sampling from a population of men born between 1941 and 1950. We find small positive short-run impacts on working time and larger ones on the retention rate in employment, but only for employees at high risk of early retirement. The wage is not affected.

Reference: ALBANESE Andrea, COCKX Bart. Permanent wage cost subsidies for older workers. An effective tool for employment retention and postponing early retirement? Labour Economics, 2018.

Keywords:
wage cost subsidies,
older workers,
weighted difference-in-differences,
endogenous sampling

Project: Evaluating Active and Passive Labour Market Policies in Europe

Linked publications
ALBANESE Andrea, CAPPELLARI Lorenzo, LEONARDI Marco.
Oxford Economic Papers, 2019, n°gpz053, pp. 1-24.
ALBANESE Andrea, COCKX Bart, THUY Yannick.
Empirical Economics, 2019.
ALBANESE Andrea, GHIRELLI Corinna, PICCHIO Matteo
LISER, 2019, Working Papers n°2019-04, 52 p.