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Old-age Unemployment and Labor Supply
Over the last two decades, most OECD countries have reformed their social security in order to make early departures from the labor market increasingly difficult. Despite the fiscal gains that are expected from these reforms, it is likely that these gains from longer careers will be partly offset by increasing expenses on other social security programs. This article sheds light on this issue by ex-ploring the consequences of postponing access to an old-age unemployment program from age 58 to 60. The program provides laid-off workers with a combination of unemployment benefits and a monthly supplement paid by the employer until the full retirement age. Exploiting a rich set of administrative ...
Subsidizing Domestic Services as a Tool to Fight Unemployment: Effectiveness and Hidden Costs
European countries have increasingly adopted wage subsidies for the sector of domestic services to reduce low-skilled unemployment. Yet, empirical evidence on their effectiveness is scarce. In this paper, we use Belgian administrative data to estimate how participation in the subsidized domestic services sector impacts the labour market outcomes of program participants. Our identification strategy rests on a dynamic event study difference-in-differences model combined with coarsened exact matching. Our findings indicate that such subsidies can be effective in reducing unemployment and inactivity, but only by increasing employment within the subsidized domestic services sector. We also find that program participation deteriorates physical health, thus increasing the worker's probability of claiming disability insurance benefits.
The Unexpected Consequences of Job Search Monitoring
This paper investigates how the implementation of Job Search Monitoring (JSM) programs over the last two decades could have impacted the rise of disability rates in OECD countries. To do so, we use an RDD design to study how a JSM program that was implemented in 2006 in Belgium could have played a role not only in the transition to employment and inactivity but also in the transition to disability. The RDD exploits the fact that the program was only targeted at long-term unemployed workers below the age of 50. Our results show that the JSM program has had a large impact on the transition rate from unemployment to disability and no impact on the transition rate to employment or inactivity. Mo...
Wage Differentials Across Sectors in Europe
Using a unique harmonized linked employer-employee dataset, this paper analyses the structure and determinants of inter-industry wage differentials in Central and Eastern European countries (Czech Republic, Latvia, Lithuania and Poland) and compares them to those observed in Western European states. Findings show substantial differences in earnings across sectors in all countries, even when controlling for a wide range of employee, job and employer characteristics. The hierarchy of sectors in terms of wages appears to be quite similar in Eastern and Western European countries, although the former tend to have higher levels of dispersion of inter-industry wage differentials.
