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

A-Tier
Journal: Journal of Development Economics
Year: 2026
Volume: 178
Issue: C

Authors (4)

Armand, Alex (Universidade Nova de Lisboa) Carneiro, Pedro (not in RePEc) Tagliati, Federico (Banco de España) Xia, Yiming (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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.

Technical Details

RePEc Handle
repec:eee:deveco:v:178:y:2026:i:c:s030438782500149x
Journal Field
Development
Author Count
4
Added to Database
2026-01-24