Resumen de The use of permanent contrats across Spanish regions: Do regional wage subsidies work?
José Ignacio García Pérez, Yolanda F. Rebollo-Sanz
This article evaluates the e..ectiveness of regional wage subsidies to foster permanent employment using the "Muestra Continua de Vidas Laborales".
This dataset, which is used here for the first time to evaluate Spanish labour market policy, o..ers a complete employment history for each individual, with no aggregation bias. The policy analyzed consists of a one-time subsidy offered by some Spanish regions for new permanent contracts signed for certain fixed-term employees and unemployed workers. Because our policy variable presents individual, regional and temporal variation, we apply a triple difference estimator to identify the average treatment e..ect of this policy. We conclude that the outflow into permanent employment of eligible workers improves only minimally.
