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Income Support Policies for Part-Time Workers: A Stepping-Stone to Regular Jobs? An Application to Young Long-Term Unemployed Women in Belgium

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  • Bart Cockx
  • Stéphane Robin
  • Christian Goebel

Abstract

We verify whether an income support policy for part-time workers in Belgium increases the transition from unemployment to non-subsidised, “regular” employment. Using a sample of 8630 long-term unemployed young women, whose labour market history is observed from 1998 to 2001, we implement the “timing of events” approach proposed by Abbring and Van den Berg (2003) to control for selection effects. Our results suggest that the policy has a significantly positive effect on the transition to non-subsidised employment when one does not control for unobserved heterogeneity. This effect remains positive, but becomes insignificant, when one corrects for selection on unobservable characteristics.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1863.

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Date of creation: 2006
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Handle: RePEc:ces:ceswps:_1863

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Keywords: active labour market policies; evaluation; mixed proportional hazard models;

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References

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Citations

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Cited by:
  1. Florent Fremigacciy & Antoine Terracol, 2009. "Subsidized temporary jobs: lock-in and stepping stone effects," Documents de recherche, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne 09-10, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
  2. Wolff, Joachim & Nivorozhkin, Anton, 2012. "Give them a break! Did activation of young welfare recipients overshoot in Germany? (A regression discontinuity analysis)," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century, Verein für Socialpolitik / German Economic Association 62046, Verein für Socialpolitik / German Economic Association.
  3. Baert, Stijn & Cockx, Bart & Verhaest, Dieter, 2013. "Overeducation at the start of the career: Stepping stone or trap?," Labour Economics, Elsevier, Elsevier, vol. 25(C), pages 123-140.
  4. Bernd Fitzenberger & Michael Lechner & Jeffrey Smith, 2013. "Estimation of treatment effects: recent developments and applications," Empirical Economics, Springer, Springer, vol. 44(1), pages 1-11, February.
  5. Eichhorst, Werner & Boeri, Tito & Braga, Michela & De Coen, An & Galasso, Vincenzo & Gerard, Maarten & Kendzia, Michael J. & Mayrhuber, Christine & Pedersen, Jakob Louis & Schmidl, Ricarda & Steiber, , 2013. "Report No. 53: Combining the Entry of Young People in the Labour Market with the Retention of Older Workers," IZA Research Reports, Institute for the Study of Labor (IZA) 53, Institute for the Study of Labor (IZA).

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