This paper studies the effects on registered employment, earnings, and number of registered establishments of two employment subsidy schemes in Turkey. We implement a difference-in-differences methodology to construct appropriate counterfactuals for the covered provinces...

To assess the employment effects of labor costs it is crucial to have reliable estimates of thelabor cost elasticity of labor demand. Using a matched firm-worker dataset, we estimate along run unconditional labor demand function, exploiting information on workers to correct forendogeneity in the...