Year: 2024
Type: preprint
Abstract: This study assesses the impact of a hiring credit policy introduced in Argentina in 2014 on various labor outcomes of firms. The reform established differentiated labor cost reductions in the employers contributions to be paid for their new employees, according to the size that firms had at a date prior to the announcement of the policy. Using a differences-in-differences approach and employer-employee administrative data, weanalyze the intervention’s effects. Our results show a significant 4.1 percentage point increase in employment growth rates for small firms compared to medium-sized ones, persisting for several years post-reform. This paper also explores the relationship between the intervention’s effects and sector labor informality; we find a significant 6.2 percentage point increase in employment growth rates for firms in high-informality sector, whereas no significant effect is found for firms in lowinformality sectors.
Authors: Octavio Bertín, Guillermo Cruces, Fabian Enrique Gonzalez, Ignacio Lunghi, Azul Menduiña
Institutions: University of Nottingham, Universidad Nacional de La Plata
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
Funder: Universidad Nacional de La Plata
OpenAlex ID: W7112491237
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