Tiziano Toniolo

(IRES/LIDAM)

will give a presentation on

Permanent exemption from social security contributions in Belgium: An evaluation with a directed search model

Abstract: Since 2016, Belgium has permanently exempted new employers from paying social security contributions to the gross wage of one of their employees. This paper aims to evaluate the spillover effects of this policy on non-eligible employers and on the agents' decision to start a business. We assess these effects using a directed search model estimated on Belgian firms' panel data.