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The longer term impact of hiring credits. Evidence from France

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  • Batut, Cyprien

Abstract

This article studies the implementation of a hiring credit aimed at small firms in France during the Great Recession. Using French administrative data, I estimate its effect on employment growth and worker flows in eligible firms more than two years after its end. The credit had a positive effect on employment growth due to more hires. Employment growth did not fall below its pre-treatment trends after the end of the credit, meaning created jobs were not transitory. The public cost per job created is 19% of its private cost in 2012.

Suggested Citation

  • Batut, Cyprien, 2021. "The longer term impact of hiring credits. Evidence from France," Labour Economics, Elsevier, vol. 72(C).
    • Handle: RePEc:eee:labeco:v:72:y:2021:i:c:s0927537121000877
    DOI: 10.1016/j.labeco.2021.102052
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    Cited by:

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    2. Bearzotti, Enia & Polanec, Sašo & Bartolj, Tjaša, 2023. "The Effects of Subsidies on Firm Size and Productivity," MPRA Paper 118490, University Library of Munich, Germany.
    3. Albanese, Andrea & Cockx, Bart & Dejemeppe, Muriel, 2024. "Long-term effects of hiring subsidies for low-educated unemployed youths," Journal of Public Economics, Elsevier, vol. 235(C).
    4. Rainer Eppel & Ulrike Huemer & Helmut Mahringer & Lukas Schmoigl, 2024. "Active Labour Market Policies: What Works for the Long-term Unemployed?," WIFO Working Papers 671, WIFO.

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    More about this item

    Keywords

    Hiring credit; Firm subsidies; Active labor market policies;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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