摘要：In 2013 Hungary introduced large scale targeted employers’ social security contribution cuts for the young, old, lowskilled,
and other marginally attached workforce, called the Job Protection Act. In this paper I estimate the employment effects of
the programme for the main target groups using the discontinuities in the JPA’s design in a differences in differences framework on
administrative datasources. My estimates show robust and economically significant employment effects for the Job Protection Act, a
total 1.2 point increase in employment rate three years after the introduction. The Job Protection Act was highly effective in the young
and low-skilled target groups, with high self-financing ratios, while it was only marginally effective in the old target group. The results
suggests that targeted tax incentives can be a cost-efficient way of increasing employment in vulnerable groups.
关键词：Job Protection Act; targeted tax incentives; differences in differences
