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Impacts of hiring subsidies targeted at the long-term unemployed on the low-skilled labor market: The French experience

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  • Bucher, Anne

Abstract

This paper proposes a theoretical matching framework to analyze firms' and workers' response to a targeted hiring subsidy program when taking into account interactions between segments of the low-skilled labor market. By developing a general equilibrium model, the paper provides a useful tool to evaluate the aggregate effects induced on the low-skilled labor market. Then, the model is computed above French data to estimate the employment and welfare effects of a measure introduced in France in 1995, the "Initiative-for-Employment Contract". Finally, as the framework is well-suited to investigate design issues, I analyze the efficiency of the French program as well as targeting issues.

Suggested Citation

  • Bucher, Anne, 2010. "Impacts of hiring subsidies targeted at the long-term unemployed on the low-skilled labor market: The French experience," Economic Modelling, Elsevier, vol. 27(2), pages 553-565, March.
    • Handle: RePEc:eee:ecmode:v:27:y:2010:i:2:p:553-565
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    References listed on IDEAS

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    Cited by:

    1. Alessandra Pasquini & Marco Centra & Guido Pellegrini, 2018. "Long-Term Unemployed hirings: Should targeted or untargeted policies be preferred?," Papers 1802.03343, arXiv.org, revised May 2018.
    2. 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.
    3. Pasquini, Alessandra & Centra, Marco & Pellegrini, Guido, 2019. "Fighting long-term unemployment: Do we have the whole picture?," Labour Economics, Elsevier, vol. 61(C).
    4. Ianchovichina, Elena & Estache, Antonio & Foucart, Renaud & Garsous, Grégoire & Yepes, Tito, 2013. "Job Creation through Infrastructure Investment in the Middle East and North Africa," World Development, Elsevier, vol. 45(C), pages 209-222.
    5. Sengul, Gonul, 2017. "Effect of labor market policies on unemployment when firms adapt their recruitment strategy," Economic Modelling, Elsevier, vol. 60(C), pages 169-179.

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