Can subsidized employment tackle long-term unemployment? Experimental evidence from North Macedonia

• 成果类型: Article
• 署名作者: Armand, Alex; Carneiro, Pedro; Tagliati, Federico; Xia, Yiming
• 署名单位: Universidade Nova de Lisboa; Centre for Economic Policy Research - UK; University of London; London School Economics & Political Science; University of London; University College London; University of London; University College London; Norwegian School of Economics (NHH); Banco de Espana; Southwestern University of Finance & Economics - China
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2025.103598
• 发表日期: 2026
• 关键词: Active labor market policy; unemployment; Wage subsidies; job search

摘要

This study experimentally assesses the effects of temporary wage subsidies on employment in North Macedonia. The target group consists of vulnerable unemployed individuals participating in an employment program that provides employers with a subsidy covering half of the wage payments during the first year of employment, as well as training expenses. Applicants are initially matched to job openings and then randomly selected for job interviews with employers, who decide whether to hire them under the program's conditions. Using administrative records, we find that being selected for an interview results in a 14-percentage-point increase in the probability of being employed in the formal economy 3.5 years after the start of the program, and an 85% increase in employment duration.