Hiring Subsidies and Female Employment

Hiring Subsidies and Female Employment

Lorenzo Incoronato (CSEF)

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ABSTRACT:

We study a hiring subsidy targeted at women with extended labor market interruptions in Italy to examine firms' hiring decisions following subsidy adoption and the career outcomes of the targeted group. Using comprehensive employer-employee data from social security records, we document that subsidized firms change their hiring patterns by increasing hiring of women from the targeted group, including mothers. Workers hired through the subsidy are also more likely to remain employed in the long term. We argue that the subsidy operates as a mechanism allowing firms to learn about the productivity of disadvantaged groups. 

BIO:

Lorenzo Incoronato is a Research Fellow at the Center for Studies in Economics and Finance (CSEF) at the University of Naples Federico II, and Project Leader at ROCKWOOL Foundation Berlin. He received his PhD in Economics from University College London and has been a visiting student at UC Berkeley. His main research interests are in labor economics and public economics.