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Permanent wage cost subsidies for older workers : an effective tool for employment retention and postponing early retirement?
Journal Contribution - Journal Article
This paper examines the effects of a permanent wage cost subsidy in Belgium on employment retention, working time and hourly wage of older men. To estimate these effects we propose a semi-parametric weighted difference- in-differences estimator that accounts for endogenous stratification in the sampling from a population of men born between 1941 and 1950. We find small positive short-run impacts on working time and larger ones on the retention rate in employment, but only for employees at high risk of early retirement. The wage is not affected.
Journal: LABOUR ECONOMICS
Pages: 145 - 166