{"id":432,"date":"2026-04-27T16:03:22","date_gmt":"2026-04-27T15:03:22","guid":{"rendered":"https:\/\/www.farhi-innovation-lab.fr\/?post_type=publication&#038;p=432"},"modified":"2026-04-27T16:03:22","modified_gmt":"2026-04-27T15:03:22","slug":"wage-and-employment-effects-of-wage-subsidies","status":"publish","type":"publication","link":"https:\/\/www.farhi-innovation-lab.fr\/fr\/publication\/wage-and-employment-effects-of-wage-subsidies\/","title":{"rendered":"Wage and Employment Effects of Wage Subsidies"},"content":{"rendered":"<p class=\"wp-block-paragraph\">This paper provides new evidence on how wage subsidies affect wages and employment. Using French administrative data, a 2015 nationwide wage subsidy reform, and a shift-share IV design, I leverage variation in reform exposure across local labor markets stemming from differences in the socio-economic composition of the local working-age population. Local labor markets more exposed to an increase in wage subsidies see faster growth in hours worked\u2014driven mainly by rising employment\u2014and slower growth in average hourly wages. The economic incidence is not borne solely by workers, as 31% of the subsidy passes through to wages on average.<\/p>","protected":false},"excerpt":{"rendered":"<p>This paper provides new evidence on how wage subsidies affect wages and employment. Using French administrative data, a 2015 nationwide wage subsidy reform, and a shift-share IV design, I leverage variation in reform exposure across local labor markets stemming from differences in the socio-economic composition of the local working-age population. Local labor markets more exposed [&hellip;]<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":true},"thematique":[130,129],"type-de-publication":[45],"class_list":["post-432","publication","type-publication","status-publish","hentry","thematique-shift-share-iv","thematique-tax-incidence","type-de-publication-working-paper"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Wage and Employment Effects of Wage Subsidies - Farhi Innovation Lab<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"fr_FR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Wage and Employment Effects of Wage Subsidies - Farhi Innovation Lab\" \/>\n<meta property=\"og:description\" content=\"This paper provides new evidence on how wage subsidies affect wages and employment. Using French administrative data, a 2015 nationwide wage subsidy reform, and a shift-share IV design, I leverage variation in reform exposure across local labor markets stemming from differences in the socio-economic composition of the local working-age population. Local labor markets more exposed [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.farhi-innovation-lab.fr\/fr\/publication\/wage-and-employment-effects-of-wage-subsidies\/\" \/>\n<meta property=\"og:site_name\" content=\"Farhi Innovation Lab\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/publication\\\/wage-and-employment-effects-of-wage-subsidies\\\/\",\"url\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/publication\\\/wage-and-employment-effects-of-wage-subsidies\\\/\",\"name\":\"Wage and Employment Effects of Wage Subsidies - Farhi Innovation Lab\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/#website\"},\"datePublished\":\"2026-04-27T15:03:22+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/publication\\\/wage-and-employment-effects-of-wage-subsidies\\\/#breadcrumb\"},\"inLanguage\":\"fr-FR\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/publication\\\/wage-and-employment-effects-of-wage-subsidies\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/publication\\\/wage-and-employment-effects-of-wage-subsidies\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Accueil\",\"item\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Publications\",\"item\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/publications\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Wage and Employment Effects of Wage Subsidies\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/#website\",\"url\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/\",\"name\":\"Farhi Innovation Lab\",\"description\":\"Economics of Institutions, Innovation, and Growth Chair\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"fr-FR\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/#organization\",\"name\":\"Farhi Innovation Lab\",\"alternateName\":\"Farhi Innovation Lab\",\"url\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"fr-FR\",\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/wp-content\\\/uploads\\\/2026\\\/04\\\/web-app-manifest-512x512-1.png\",\"contentUrl\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/wp-content\\\/uploads\\\/2026\\\/04\\\/web-app-manifest-512x512-1.png\",\"width\":512,\"height\":512,\"caption\":\"Farhi Innovation Lab\"},\"image\":{\"@id\":\"https:\\\/\\\/www.farhi-innovation-lab.fr\\\/#\\\/schema\\\/logo\\\/image\\\/\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Wage and Employment Effects of Wage Subsidies - Farhi Innovation Lab","robots":{"index":"noindex","follow":"follow"},"og_locale":"fr_FR","og_type":"article","og_title":"Wage and Employment Effects of Wage Subsidies - Farhi Innovation Lab","og_description":"This paper provides new evidence on how wage subsidies affect wages and employment. 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