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“You reap what you sow”: Do active labour market policies always increase job security? Evidence from the Youth Guarantee

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  • Chiara Natalie Focacci

    (University of Bologna
    Erasmus University Rotterdam)

Abstract

The paper uses non-experimental longitudinal data to study the effects of participation in the Youth Guarantee programme aimed at fighting youth inactivity in the European Union territory. Particularly, this analysis questions the value of active labour market policy as a valid instrument to help individuals otherwise isolated from the labour market and, thus, at risk of deterioration of human capital overcome their condition of occupational inactivity. A difference-in-differences model is exploited in this regard to investigate whether there exists an advantage for participants of the Youth Guarantee in terms of employment and job stability. Results show that participants are 7.4 and 4.4 percentage points more likely to, respectively, become employed and be offered an open-ended contract. An assessment of profiling is also provided.

Suggested Citation

  • Chiara Natalie Focacci, 2020. "“You reap what you sow”: Do active labour market policies always increase job security? Evidence from the Youth Guarantee," European Journal of Law and Economics, Springer, vol. 49(3), pages 373-429, June.
    • Handle: RePEc:kap:ejlwec:v:49:y:2020:i:3:d:10.1007_s10657-020-09654-6
    DOI: 10.1007/s10657-020-09654-6
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    1. Claudia Petrescu & Bogdan Voicu & Christin Heinz-Fischer & Jale Tosun, 2024. "Conceiving of and politically responding to NEETs in Europe: a scoping review," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.
    2. Carlos Pesquera Alonso & Práxedes Muñoz Sánchez & Almudena Iniesta Martínez, 2021. "Youth Guarantee: Looking for Explanations," Sustainability, MDPI, vol. 13(10), pages 1-13, May.
    3. Carlos Pesquera Alonso & Almudena Iniesta Martínez & Práxedes Muñoz Sánchez, 2022. "Barriers That Keep Vulnerable People as NEETs," Social Sciences, MDPI, vol. 11(6), pages 1-20, June.

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    More about this item

    Keywords

    Active labour market policy; Difference-in-differences; European Union; Flexicurity; NEET; Profiling; Training; Youth Guarantee; Youth unemployment;
    All these keywords.

    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)
    • J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy
    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law

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