Working Paper: CEPR ID: DP2394
Authors: Denis Fougre; Francis Kramarz; Thierry Magnac
Abstract: In this paper, we present a summary of recent microeconometric results on the evaluation of the effects of active labour market policies on youth employment in France. We focus our discussion on three types of policies: (1) youth employment schemes for out-of-employment and low-skilled young adults, (2) on-the-job training schemes, (3) payroll tax subsidies for minimum wage workers. Training programs for unemployed young workers have in general no effects on post-training wages or employment probabilities, except if they have a large training content. In contrast, the reduction of labour costs has significant effects on employment probabilities of low-wage workers; however their effects appear to be stronger for workers between 25 and 30.
Keywords: Training Programs; Youth Unemployment; Minimum Wage; Evaluation Methodology
JEL Codes: C33; C41; J38; J68
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Training programs for unemployed young individuals (J68) | post-training wages (J31) |
| Training programs for unemployed young individuals with substantial training content (M53) | employment probabilities (J68) |
| Payroll tax subsidies for minimum wage workers (J38) | employment probabilities of low-wage workers (J68) |