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Employment Subsidies, Informal Economy and Women's Transition into Work in a Depressed Area: Evidence from a Matching Approach

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  • Deidda, Manuela

    (University of Cagliari)

  • Di Liberto, Adriana

    (University of Cagliari)

  • Foddi, Marta

    (University of Cagliari)

  • Sulis, Giovanni

    (University of Cagliari)

Abstract

We analyze the effects of an ALMP for disadvantaged workers implemented in a depressed area of Italy. Using propensity-score matching, we find that a) the employment subsidy had a positive effect for participants on both the probability of finding a job and income, b) the outcome of the policy was more positive for women, and c) the program was more effective for older and less-educated female workers. Using data on previous contacts between workers and firms and on informal channels for job search activity, we ultimately explore the role of the program in promoting the transition from informal to salaried employment.

Suggested Citation

  • Deidda, Manuela & Di Liberto, Adriana & Foddi, Marta & Sulis, Giovanni, 2015. "Employment Subsidies, Informal Economy and Women's Transition into Work in a Depressed Area: Evidence from a Matching Approach," IZA Discussion Papers 8886, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8886
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    Cited by:

    1. Patrick Kline & Enrico Moretti, 2013. "Place Based Policies with Unemployment," American Economic Review, American Economic Association, vol. 103(3), pages 238-243, May.
    2. Binnur Balkan & Yusuf Soner Baskaya & Semih Tumen, 2014. "Evaluating the Impact of the Post-2008 Employment Subsidy Program in Turkey," Working Papers 1414, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    3. d'Agostino, Giorgio & Patriarca, Fabrizio & Pieroni, Luca & Scarlato, Margherita, 2020. "The perverse effects of hiring credits as a place-based policy: Evidence from Southern Italy," MPRA Paper 102240, University Library of Munich, Germany.
    4. Yasemin Dildar, 2020. "Targeting Women’s Employment: Do Employment Subsidies Work? Evidence from Turkey," Review of Radical Political Economics, Union for Radical Political Economics, vol. 52(1), pages 5-25, March.
    5. Halit Basbuga & Hatip Kitapci, 2020. "The Effects of the Incentive for Young and Female Employment Regulated By Law No. 6111 and Macroeconomic Variables on Employment, Informal Employment, and," International Journal of Economics and Financial Issues, Econjournals, vol. 10(5), pages 178-186.
    6. Halit Basbuga & Hakan Kitapci & Enes Cengiz Oguz & Yusuf Elkoca, 2022. "Active Labour Market Policies and Macroeconomic Variables on Employment, Informal Employment and Income Effects: The case of Turkey," International Journal of Economics and Financial Issues, Econjournals, vol. 12(2), pages 72-83, March.

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    More about this item

    Keywords

    employment subsidies; female labor-force participation; evaluation; informal economy;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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