Employment Subsidies, Informal Economy and Women's Transition into Work in a Depressed Area: Evidence from a Matching Approach

41 Pages Posted: 16 Mar 2015

See all articles by Manuela Deidda

Manuela Deidda

Free University of Bolzano - Competence Centre in Tourism Management and Tourism Economics (TOMTE); Universita di Cagliari - Centre for North South Economic Research (CRENOS)

Adriana Di Liberto

Università di Cagliari and Crenos; IZA Institute of Labor Economics

Marta Foddi

Universita di Cagliari - Centre for North South Economic Research (CRENOS)

Giovanni Sulis

Department of Economics and Business, University of Cagliari; IZA Institute of Labor Economics; CRENoS

Abstract

We analyze the effects of an ALMP for disadvantaged workers implemented in a depressed area of Italy. Using propensity-score matching, we find that a) the employment subsidy had a positive effect for participants on both the probability of finding a job and income, b) the outcome of the policy was more positive for women, and c) the program was more effective for older and less-educated female workers. Using data on previous contacts between workers and firms and on informal channels for job search activity, we ultimately explore the role of the program in promoting the transition from informal to salaried employment.

Keywords: employment subsidies, female labor-force participation, evaluation, informal economy

JEL Classification: C14, C83, J64, J16

Suggested Citation

Deidda, Manuela and Di Liberto, Adriana and Foddi, Marta and Sulis, Giovanni, Employment Subsidies, Informal Economy and Women's Transition into Work in a Depressed Area: Evidence from a Matching Approach. IZA Discussion Paper No. 8886, Available at SSRN: https://ssrn.com/abstract=2578238 or http://dx.doi.org/10.2139/ssrn.2578238

Manuela Deidda (Contact Author)

Free University of Bolzano - Competence Centre in Tourism Management and Tourism Economics (TOMTE) ( email )

Universita di Cagliari - Centre for North South Economic Research (CRENOS) ( email )

V. S. Ignazio 78
Cagliari, 09124
ITALY

Adriana Di Liberto

Università di Cagliari and Crenos ( email )

via S. Ignazio 78
Cagliari, 09123
Italy

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Marta Foddi

Universita di Cagliari - Centre for North South Economic Research (CRENOS) ( email )

V. S. Ignazio 78
Cagliari, 09124
Italy

Giovanni Sulis

Department of Economics and Business, University of Cagliari

Viale S Ignazio da Laconi 17
09123 Cagliari
Cagliari, 09123
Italy

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

CRENoS ( email )

Facolta di Scienze Politiche via Sant'Ignazio 78
Cagliari, 09124

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