The Effectiveness of Hiring Credits

Cahuc, Pierre; Carcillo, Stéphane; Barbanchon, Thomas Le

doi:10.1093/restud/rdy011

Cited by 100 publications

(92 citation statements)

References 52 publications

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“…Panel B: Broad labour underutilisation: % of inactive, unemployed or involuntary part-timers (15-64) in population, excl. youth (15)(16)(17)(18)(19)(20)(21)(22)(23)(24)(25)(26)(27)(28)(29) in education and not in employment. Data refer to 2014 for Japan and 2015 for Chile.…”

Section: Employment Is Low Particularly Among Low-skilled Youth Andmentioning

confidence: 99%

“…Single-person households with earnings up to 1.5 times the full-time minimum wage can now receive the Prime d'activité, up from 1.3 times before the reform. In total, 33% more individuals are estimated to become eligible (CAF, 2018 [20]).…”

Section: The Reforms Of the Prime D'activitémentioning

confidence: 99%

“…158 and the European Social Charter. 20 At the same time, other courts have concluded that the schedule is in line with international commitments. Legal limits on the level of compensation for employees in case of unfair dismissal exist in many countries, including in countries that have ratified ILO Convention 158 or the European Social Charter (Box 3.3).…”

mentioning

confidence: 99%

“…15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 110 115 120 125 130 135 140 145 150 Absolute amounts (€ per month) Share of the annual minimum wage (%) Prime d'activité before reforms (start 2018) Work bonus before reforms (start 2018) Prime d'activité after lump-sum increase (Oct 2018) Work bonus after lump-sum increase (Oct 2018) Prime d'activité after bonus increase (Jan 2019) Work bonus after bonus increase (Jan 2019) Net household income has increased substantially at the minimum wage Note: 2018 except for Canada (2017). Simulations refer to single household without children.…”

mentioning

confidence: 99%

See 3 more Smart Citations

Assessing recent reforms and policy directions in France

Carcillo¹,

Goujard²,

Hijzen³

et al. 2019

OECD Social, Employment and Migration Working Papers

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Section: Employment Is Low Particularly Among Low-skilled Youth Andmentioning

confidence: 99%

Section: The Reforms Of the Prime D'activitémentioning

confidence: 99%

mentioning

confidence: 99%

mentioning

confidence: 99%

See 2 more Smart Citations

Assessing recent reforms and policy directions in France

Carcillo¹,

Goujard²,

Hijzen³

et al. 2019

OECD Social, Employment and Migration Working Papers

View full text Add to dashboard Cite

show abstract

“…35 As shown by our theoretical model, the speci…c strength of short-time work is its targeting of employees at risk of losing their job in 34 Using the strati…cation of …rms by tercile instead yields similar results. 35 The cost per job created of a permanent wage subsidy amounts to the labor cost divided by the absolute value of the elasticity of labor demand with respect to labor cost (Cahuc et al (2018)). Assuming that this elasticity lies between 1 and 0:5 (Hamermesh (2014)), the cost per job created of a wage subsidy lies between 100% and 200% of the labor cost.…”

Section: Cost Per Job Savedmentioning

confidence: 99%

When Short-Time Work Works

2018

Self Cite

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Short-time work programs were revived by the Great Recession. To understand their operating mechanisms, we …rst provide a model showing that short-time work may save jobs in …rms hit by strong negative revenue shocks, but not in less severely-hit …rms, where hours worked are reduced, without saving jobs. The cost of saving jobs is low because short-time work targets those at risk of being destroyed. Using extremely detailed data on the administration of the program covering the universe of French establishments, we devise a causal identi…cation strategy based on the geography of the program that demonstrates that short-time work saved jobs in …rms faced with large drops in their revenues during the Great Recession, in particular when highly levered, but only in these …rms. The measured cost per saved job is shown to be very low relative to that of other employment policies.

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Tax policy implications for a two‐engine growing economy

Wang

Liu

Chang

2020

Southern Economic Journal

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In an endogenous growth model with two engines of R&D and capital, we investigate the environment of “inclusive growth” for tax reallocations (tax increases or tax credits) to gain broader benefits in terms of promoting the overall GDP growth without an increase in income inequality. Our results show that a tax increase in the capital‐good sector can result in inclusive growth, boosting overall growth and reducing income inequality, provided that the status quo tax rate is not too high. Surprisingly, tax credits are not able to achieve such inclusive growth. While the GDP growth rises, a tax credit in the R&D sector not only increases income inequality but also decreases the aggregate employment, if the labor mobility cost between the final‐good and R&D/capital‐good sectors is relatively low. This provides a caution to policymakers given the fact that research tax credits have served as a common incentive to strengthen the R&D environment.

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The Effectiveness of Hiring Credits

Cited by 100 publications

References 52 publications

Assessing recent reforms and policy directions in France

Assessing recent reforms and policy directions in France

When Short-Time Work Works

Tax policy implications for a two‐engine growing economy

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