👷 My research is driven by two big questions: (I) What explains the high unemployment rates in Spain? and (II) What interventions can reduce this problem?
More money, more effect? Employment effects of job search services of different intensity
(Submitted). Version 2 - April 2025. [Working paper and code]
Despite being widely regarded as effective labor market policies, the impact of job search services on employment remains contested. Recent research challenges the assumption that the intensity of such programs is directly related with its effectiveness. We evaluate the effects of two treatments of an Italian active labour market program called Assegno per il Lavoro. Each intervention is made up of a voucher to fund job search assistance and a performance-based payment related to job search intermediation. Participants are assigned to a certain group with a certain treatment endowment that is increasing as a function of a scoring variable. Leveraging this design, we applied a regression discontinuity analysis to estimate effects on both employment duration and employment quality. First, being assigned to an intermediate-dose treatment slightly increased the probability of finding an open-ended employment, but this did not generate an increment in the average of days worked. Second, being assigned to a high-dose treatment only augmented the mean and the median of the distribution of days worked during the second semester and it did with a greater prevalence of short temporary contracts. Third, different treatment assignments barely changed the reception of job search assistance, so the impacts stem from job search intermediation. The main policy implication is a shift from a focus on intensity to a focus on other design features.
Which companies use employment subsidies for young workers?
(Submitted). Version 1 - January 2025. [Working paper]
Active labour market policies like employment subsidies require the involvement of employers to be implemented. However, little is known about the types of firms that participate in these programs. This article merges administrative data of subsidy recipients of a program targeted to young workers from Andalusia (Spain) with balance sheet data of Spanish non-financial companies obtaining a sample of 115,867 units. In a first stage, we avoid modelling assumptions by estimating summary statistics on the socioeconomic features of the companies that used the subsidy. In a second stage, to measure the associations with flexible models, we estimate generalized additive models with restricted cubic splines. The model estimates indicate that there are two variables with outstanding prediction ability of participation in employment subsidies: the temporary rate of the workforce and the gross value added of the firm. Thanks to our flexible model, we detect that the relationship between using a subsidy and the temporary rate is non-linear, specifically hump-shaped. Considering interquartile variations in the covariates, a rise in the temporary rate or the gross value added is associated with a substantial increase in the odds of getting an employment subsidy for young people. Our results show the usefulness of generalized additive models to shed light on the actual recipients of the subsidies. This may be of interest when policymakers expect employers to informally train the workers or if they want to foster innovation or certain economies of scale.