{"title":"Hiring Subsidies and Firm Growth: Some New Evidence from Italy","authors":"Domenico Depalo, Eliana Viviano","doi":"10.1007/s40797-023-00261-3","DOIUrl":null,"url":null,"abstract":"<p>Hiring subsidies are among the most widely used policies to support employment growth for certain groups of workers or disadvantaged geographic areas. In this article, we analyze the medium-run consequences of a generous, non-targeted permanent hiring subsidy implemented throughout Italy in 2015, which was widely used by firms. The results indicate that firms benefiting from the subsidy increased in size. However, compared to other firms, the growth rate of capital–labour ratio and value added per worker were lower after the subsidy. We conclude that policies to stimulate hiring must be accompanied by other interventions to support capital accumulation.</p>","PeriodicalId":43048,"journal":{"name":"Italian Economic Journal","volume":null,"pages":null},"PeriodicalIF":1.2000,"publicationDate":"2024-01-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Italian Economic Journal","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1007/s40797-023-00261-3","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
Hiring subsidies are among the most widely used policies to support employment growth for certain groups of workers or disadvantaged geographic areas. In this article, we analyze the medium-run consequences of a generous, non-targeted permanent hiring subsidy implemented throughout Italy in 2015, which was widely used by firms. The results indicate that firms benefiting from the subsidy increased in size. However, compared to other firms, the growth rate of capital–labour ratio and value added per worker were lower after the subsidy. We conclude that policies to stimulate hiring must be accompanied by other interventions to support capital accumulation.
期刊介绍：
Italian Economic Journal (ItEJ) is the official peer-reviewed journal of the Italian Economic Association. ItEJ publishes scientific articles in all areas of economics and economic policy, providing a scholarly, international forum for all methodological approaches and schools of thought. In particular, ItEJ aims at encouraging and disseminating high-quality research on the Italian and the European economy. To fulfill this aim, the journal welcomes applied, institutional and theoretical papers on relevant and timely issues concerning the European and Italian economic debate.ItEJ merges the Rivista Italiana degli Economisti (RIE), the journal founded by the Italian Economic Association in 1996, with the Giornale degli Economisti (GdE), founded in 1875 and enriched by contributions from renowned economists, including Amoroso, Black, Barone, De Viti de Marco, Edgeworth, Einaudi, Modigliani, Pantaleoni, Pareto, Slutsky, Tinbergen and Walras.
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