Does subsidised temporary employment get the unemployed back to work? An econometric analysis of two different schemes
AbstractSubsidised employment is one tool of active labour market policies to improve the chances of the unemployed to find permanent employment. Using informative individual data coming from various administrative sources we investigate the effects of two different schemes of subsidised temporary employment implemented in Switzerland. One scheme operates as a non-profit employment programme (EP), whereas the other is a subsidy for temporary jobs (TEMP) in firms operating in competitive markets. Using econometric matching methods we find that TEMP is considerably more successful in getting the unemployed back into work than TEMP. We also find that compared to nonparticipation both programmes are unsuccessful for unemployed that find job easily anyway as well for those with short unemployment duration. For unemployed with potentially long unemployment duration and for actual long term unemployed, both programmes may have some positive effect, but the effect of TEMP is much larger.
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Bibliographic InfoPaper provided by International Conferences on Panel Data in its series 10th International Conference on Panel Data, Berlin, July 5-6, 2002 with number A2-2.
Date of creation: Jan 2002
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Subsidised temporary job; employment programme; temporary work contracts; active labour market policies; matching on the propensity score; Switzerland;
Other versions of this item:
- Gerfin, Michael & Lechner, Michael & Steiger, Heidi, 2005. "Does subsidised temporary employment get the unemployed back to work? Aneconometric analysis of two different schemes," Labour Economics, Elsevier, vol. 12(6), pages 807-835, December.
- Gerfin, Michael & Lechner, Michael & Stieger, Heidi, 2002. "Does Subsidized Temporary Employment Get the Unemployed Back to Work? An Econometric Analysis of Two Different Schemes," CEPR Discussion Papers 3669, C.E.P.R. Discussion Papers.
- Michael Gerfin & Michael Lechner & Heidi Steiger, 2002. "Does subsidised temporary employment get the unemployed back to work? An econometric analysis of two different schemes," University of St. Gallen Department of Economics working paper series 2002 2002-22, Department of Economics, University of St. Gallen.
- Gerfin, Michael & Lechner, Michael & Steiger, Heidi, 2002. "Does Subsidised Temporary Employment Get the Unemployed Back to Work? An Econometric Analysis of Two Different Schemes," IZA Discussion Papers 606, Institute for the Study of Labor (IZA).
- Michael Gerfin & Michael Lechner & Heidi Steiger, 2003. "Does subsidised temporary employment get the unemployed back to work? An econometric analysis of two different schemes," Diskussionsschriften dp0303, Universitaet Bern, Departement Volkswirtschaft.
- J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
- J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-07-04 (All new papers)
- NEP-LAB-2002-07-04 (Labour Economics)
- NEP-PKE-2002-07-04 (Post Keynesian Economics)
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