Can Wage Subsidies Boost Employment in the Wake of an Economic Crisis? Evidence from Mexico

• Published in: The Journal of development studies Vol. 56(8); pp. 1558 - 77
• Main Author: Bruhn, Miriam
• Format: Journal Article
• Language: English
• Published: Taylor and Francis 31.01.2020
• Subjects: ECONOMIC SHOCK; EMPLOYMENT; FIRM INCENTIVES; WAGE SUBSIDY

This paper measures the employment effect of a program in Mexico that granted firms wage subsidies during the recent economic crisis. I use monthly administrative data at the industry level, along with Euclidean distance matching to construct groups of eligible and ineligible durable goods manufactu...