July 2014

IZA DP No. 8318: Wage Subsidies and Hiring Chances for the Disabled: Some Causal Evidence

revised version published in: European Journal of Health Economics [Online Access]

We evaluate the effectiveness of wage subsidies as a policy instrument to integrate disabled individuals into the labour market. To identify causal effects, we conduct a large-scale field experiment in Belgium. Our results show that the likelihood of a disabled candidate receiving a positive response to a job application is not positively influenced by revealing entitlement to the Flemish Supporting Subsidy.