Maxime Gravoueille - Monash University

01 Oct. 2025 - 01 Oct. 2025

Microeconomics Seminar: Every Wednesdays
Time: 12h15 – 13h30
Date: 01/10/2025
Room: 3001

Maxime GRAVOUEILLE (Monash University) – “Wage and Employment Effects of Wage Subsidies”

CV : 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–driven mainly by rising employment–and 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.

Organizers:

Julien COMBE (Pôle d’Economie du CREST)
Yves Le YAOUANQ (Pôle d’Economie du CREST)
Matias NUNEZ (Pôle d’Economie du CREST)

Sponsor:
CREST