Hiring subsidies for people with a disability: do they work?

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• dc.contributor.author Jimenez-Martin, Sergi
• dc.contributor.author Juanmartí Mestres, Arnau
• dc.contributor.author Vall-Castelló, Judit
• dc.date.accessioned 2025-01-22T09:17:28Z
• dc.date.available 2025-01-22T09:17:28Z
• dc.date.issued 2019
• dc.description.abstract This article evaluates the effectiveness of hiring subsidies targeted to people with disabilities. By exploiting the timing of implementation among different Spanish regions of a subsidy scheme implemented in Spain during the period 1990–2014, we employed a difference-in-differences approach to estimate the impact of the scheme on the probability of disability insurance (DI) beneficiaries of transiting to employment and on the propensity of individuals of entering the DI program. Our results show that the introduction of the subsidy scheme is in general ineffective at incentivizing transitions to employment, and in some cases it is associated with an increased propensity of transiting to DI. Furthermore, we show that an employment protection component incorporated into the subsidy scheme, consisting in the obligation for the employer to maintain the subsidized worker in employment, is associated with less transitions to permanent employment, more transitions to temporary employment and more transitions to DI, suggesting that these type of employment protection measures can have undesired effects for people with disabilities.
• dc.description.sponsorship We gratefully acknowledge financial support from Recercaixa for the 2014 project “Promoting the labour market integration of disabled workers: A policy evaluation exercise for Spain” and from the Spanish Ministry of Economy grants ECO2014-52238-R and ECO2017-83668-R. We thank seminar participants at CRES, Pompeu Fabra University, FEDEA, UNED, the Recercaixa-CRES Workshop on Disability Topics, the XXXVI Conference of the Spanish Health Economics Association and the Third EuHEA PhD Conference for their useful comments.
• dc.format.mimetype application/pdf
• dc.identifier.citation Jiménez-Martín S, Juanmartí Mestres A, Vall Castelló J. Hiring subsidies for people with a disability: do they work? Eur J Health Econ. 2019 Jul;20(5):559-89. DOI: 10.1007/s10198-019-01030-9
• dc.identifier.doi http://dx.doi.org/10.1007/s10198-019-01030-9
• dc.identifier.issn 1618-7598
• dc.identifier.uri http://hdl.handle.net/10230/69239
• dc.language.iso eng
• dc.publisher Springer
• dc.relation.ispartof European Journal of Health Economics. 2019 Jul;20(5):559-89
• dc.relation.projectID info:eu-repo/grantAgreement/ES/1PE/ECO2014-52238-R
• dc.relation.projectID info:eu-repo/grantAgreement/ES/2PE/ECO2017-83668-R
• dc.rights This version of the article has been accepted for publication, after peer review (when applicable) and is subject to Springer Nature’s AM terms of use, but is not the Version of Record and does not reflect post-acceptance improvements, or any corrections. The Version of Record is available online at: http://dx.doi.org/10.1007/s10198-019-01030-9.
• dc.rights.accessRights info:eu-repo/semantics/openAccess
• dc.subject.keyword Disability
• dc.subject.keyword Employment subsidies
• dc.subject.keyword Labor market transitions
• dc.subject.keyword Disability insurance
• dc.subject.keyword Difference-in-differences
• dc.title Hiring subsidies for people with a disability: do they work?
• dc.type info:eu-repo/semantics/article
• dc.type.version info:eu-repo/semantics/acceptedVersion