Can subsidized employment tackle long-term unemployment?: Experimental evidence from North Macedonia

Alex Armand; Pedro Carneiro; Federico Tagliati; Yiming Xia

Can subsidized employment tackle long-term unemployment? Experimental evidence from North Macedonia

Alex Armand, Pedro Carneiro, Federico Tagliati, Yiming Xia

NOVA School of Business and Economics (NOVA SBE)

Research output: Working paper

Abstract

This paper examines the impact of an experiment in North Macedonia in which vulnerable unemployed individuals applying to a subsidized employment program were randomly selected to attend job interviews. Employers hiring a new employee from the target population receive a subsidy covering the wage cost of the worker for the first six months. Using administrative employment data, we find that attending the job interview led to an increase of 15 percentage points in the likelihood of being employed 3.5 years after the start of the intervention. We also find positive and statistically significant effects on individuals' non-cognitive and work-related skills.

Original language	English
Publisher	Centre for Economic Policy Research (CEPR)
Publication status	Published - Aug 2020

Publication series

Name	CEPR Discussion Papers

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

https://cepr.org/active/publications/discussion_papers/dp.php?dpno=15192

Cite this

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