The rise in unemployment during an
economic crisis poses a significant concern to policy
makers. This paper measures the effect of a program in
Mexico that granted firms in certain industries wage
subsidies if they decided to keep their workers instead of
letting them go during the recent economic crisis. The
analysis uses monthly administrative data on employment at
the industry level, along with propensity score matching to
construct groups of eligible and ineligible durable goods
manufacturing industries that display statistically
identical pre-program trends in employment.
Difference-in-difference results show a positive but not
statistically significant effect of the wage subsidies on
employment during the program’s eight-month duration,
ranging from 5.7 to 13.2 percent in magnitude, depending on
the specification. The size of the effect increases to 24
percent after the program ended and the results indicate
that employment after the program recovered faster in
eligible industries than in ineligible industries.
Bibliographic Details
| Main Author: |
Bruhn, Miriam |
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| Format: | Working Paper
biblioteca
|
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| Language: | English
en_US |
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| Published: |
World Bank, Washington, DC
2016-03
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| Subjects: | FIRING RESTRICTIONS,
JOBS,
PRODUCING GOODS,
UNEMPLOYMENT,
EMPLOYMENT,
LABOR MARKET,
TRAINING COSTS,
WORKERS,
WAGE‐SUBSIDY,
SEVERANCE PAYMENTS,
LABOR MARKET PROGRAMS,
WAGES,
WAGE SUBSIDY,
SKILLED WORKERS,
MINIMUM WAGE,
ACTIVE LABOR MARKET PROGRAMS,
WAGE SUBSIDIES,
JOB TENURE,
LABOR FORCE,
PROBIT REGRESSION,
WORK SCHEDULE,
UNEMPLOYED WORKERS,
JOB,
RISING UNEMPLOYMENT,
LABOR STATISTICS,
PRIVATE SECTOR,
MINIMUM WAGES,
DISPLACEMENT EFFECT,
WAGE SUBSIDY PROGRAM,
LABOR MARKET POLICIES,
EMPLOYMENT TRENDS,
ACTIVE LABOR,
WAGE‐SUBSIDY PROGRAM,
EMPLOYMENT LEVELS,
MANUFACTURING INDUSTRIES,
EMPLOYMENT SUBSIDIES,
DISPLACEMENT EFFECTS,
CREATING JOBS,
DISPLACEMENT,
WORKER,
EMPLOYEE,
ACTIVE LABOR MARKET,
MANUFACTURING INDUSTRY,
COLLEGE GRADUATES,
UNEMPLOYED,
JOB LOSS,
INFORMAL EMPLOYMENT,
MEDICAL CARE,
LABOUR,
EMPLOYMENT RETENTION,
LABOR,
DISADVANTAGED WORKERS,
TOTAL EMPLOYMENT,
EMPLOYMENT PROSPECTS,
WAGE EMPLOYMENT SUBSIDIES,
INDUSTRIES,
WAGE EMPLOYMENT,
EMPLOYEES, |
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| Online Access: | http://documents.worldbank.org/curated/en/2016/03/26085106/can-wage-subsidies-boost-employment-wake-economic-crisis-evidence-mexico
https://hdl.handle.net/10986/24149
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