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The effect of the 2008 employment support programme on young men’s labour market outcomes in Turkey: Evidence from a regression discontinuity design

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  • Oznur Ozdamar
  • Eleftherios Giovanis
  • Cansu Dağlıoğlu
  • Cemaleddin Gerede

Abstract

Active labour market policies (ALMPs), such as subsidies for wages, social security contributions (SSCs) and employment, are one of the most important tools of countries’ efforts to tackle unemployment. The Turkish government launched the employment subsidy programme in 2008, aiming to decrease unemployment and to encourage formal employment by subsidizing the SSCs for relatively disadvantaged groups. The aim of this study is to investigate the effects of the 2008 policy on various labour outcomes. The entire analysis relies on micro‐level panel data derived by the Survey of Income and Living Conditions over the period of 2008–2011. Young men aged between 18 and 29 years are eligible to the programme. To infer causality, we apply a regression discontinuity design analysis using as the cut‐off point those who are aged 30 years. The findings show that the policy of 2008 had a positive impact on employment and the probability of being employed in the formal sector and working full time.

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  • Oznur Ozdamar & Eleftherios Giovanis & Cansu Dağlıoğlu & Cemaleddin Gerede, 2021. "The effect of the 2008 employment support programme on young men’s labour market outcomes in Turkey: Evidence from a regression discontinuity design," Manchester School, University of Manchester, vol. 89(3), pages 276-296, June.
    • Handle: RePEc:bla:manchs:v:89:y:2021:i:3:p:276-296
    DOI: 10.1111/manc.12362
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    References listed on IDEAS

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    1. Eleftherios Giovanis & Oznur Ozdamar, 2023. "Instrumental variables in structural equation modelling: an application on the impact of labour factors on health and standard of livings," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 32(4), pages 1083-1121, October.
    2. Likai Chen & Georg Keilbar & Liangjun Su & Weining Wang, 2023. "Inference on many jumps in nonparametric panel regression models," Papers 2312.01162, arXiv.org, revised Jan 2025.

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