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Permanent Wage Cost Subsidies for Older Workers . An Effective Tool for Increasing Working Time and Postponing Early Retirement?

Bart Cockx (UGent) and Andrea Albanese (UGent)
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Abstract
In several OECD countries age-targeted wage subsidies have been introduced to increase the employment of older workers, but evidence on their effectiveness is scarce. This paper examines the effects of a permanent wage cost subsidy in Belgium on the employment rate, working time and hourly wage. We estimate these effects by integrating Inverse Probability Weighting in a, possibly trend-adjusted, Difference-in-Differences of endogenously sampled repeated cross sections. We find small positive short-run impacts on working time and larger ones on the employment rate, but only for employees at high risk of leaving to early retirement. The wage is not affected.
Keywords
wage cost subsidies, older workers, weighted Difference-in-Differences, endogenous sampling

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MLA
Cockx, Bart, and Andrea Albanese. “Permanent Wage Cost Subsidies for Older Workers . An Effective Tool for Increasing Working Time and Postponing Early Retirement?” IZA discussion paper 2015 : n. pag. Print.
APA
Cockx, B., & Albanese, A. (2015). Permanent Wage Cost Subsidies for Older Workers . An Effective Tool for Increasing Working Time and Postponing Early Retirement? IZA discussion paper. Bonn: IZA.
Chicago author-date
Cockx, Bart, and Andrea Albanese. 2015. “Permanent Wage Cost Subsidies for Older Workers . An Effective Tool for Increasing Working Time and Postponing Early Retirement?” IZA Discussion Paper. Bonn: IZA.
Chicago author-date (all authors)
Cockx, Bart, and Andrea Albanese. 2015. “Permanent Wage Cost Subsidies for Older Workers . An Effective Tool for Increasing Working Time and Postponing Early Retirement?” IZA Discussion Paper. Bonn: IZA.
Vancouver
1.
Cockx B, Albanese A. Permanent Wage Cost Subsidies for Older Workers . An Effective Tool for Increasing Working Time and Postponing Early Retirement? IZA discussion paper. Bonn: IZA; 2015.
IEEE
[1]
B. Cockx and A. Albanese, “Permanent Wage Cost Subsidies for Older Workers . An Effective Tool for Increasing Working Time and Postponing Early Retirement?,” IZA discussion paper, no. 8988. IZA, Bonn, 2015.
@misc{8509650,
  abstract     = {In several OECD countries age-targeted wage subsidies have been introduced to increase the employment of older workers, but evidence on their effectiveness is scarce. This paper examines the effects of a permanent wage cost subsidy in Belgium on the employment rate, working time and hourly wage. We estimate these effects by integrating Inverse Probability Weighting in a, possibly trend-adjusted, Difference-in-Differences of endogenously sampled repeated cross sections. We find small positive short-run impacts on working time and larger ones on the employment rate, but only for employees at high risk of leaving to early retirement. The wage is not affected.},
  author       = {Cockx, Bart and Albanese, Andrea},
  keywords     = {wage cost subsidies,older workers,weighted Difference-in-Differences,endogenous sampling},
  language     = {eng},
  number       = {8988},
  publisher    = {IZA},
  series       = {IZA discussion paper},
  title        = {Permanent Wage Cost Subsidies for Older Workers . An Effective Tool for Increasing Working Time and Postponing Early Retirement?},
  url          = {http://ftp.iza.org/dp8988.pdf},
  year         = {2015},
}