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Home | Events Archive | Subsidizing Domestic Services to Create (Formal) Low-Skilled Jobs: Effectiveness and Unintended Impact on Work Disability
Seminar

Subsidizing Domestic Services to Create (Formal) Low-Skilled Jobs: Effectiveness and Unintended Impact on Work Disability


  • Series
    Brown Bag Seminars General Economics
  • Speaker(s)
    Elisabeth Leduc (Solvay Brussels, School of Economics and Management)
  • Field
    Empirical Microeconomics
  • Location
    Kitchen/hall on floor E1
    Rotterdam
  • Date and time

    October 07, 2021
    12:00 - 13:00

  • European countries have increasingly adopted wage subsidies for the sector of domestic services to create (formal) employment opportunities for low-skilled workers. Yet, empirical evidence on their effectiveness is scarce. Using Belgian administrative data and a difference-in-differences approach, we estimate the effects of subsidizing domestic services on employment and work disability. We find that domestic service subsidies are effective in increasing (formal) employment in the targeted sectors, and show evidence that this occurs both through the creation of new jobs and the formalisation of previously undeclared activities. We also find that the program increases work disability in the targeted sectors and provide evidence that this occurs due to subsidized workers experiencing a health deterioration after working in domestic services.