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Guaranteed minimum income and unemployment duration in France

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  • Antoine Terracol

    ()
    (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)

Abstract

In this article, we use data from the European Community Household Panel to evaluate the impact of a French guaranteed income program, the RMI, on the hazard out of unemployment. Self-selection into the program is corrected using a multivariate duration model developed by [Abbring, J.H., van den Berg, G.J., 2003. The non-parametric identification of treatment effects in duration models. Econometrica 71 (5), 1491- 1517]. We find that RMI receipt has a strong negative impact during the first months of program participation, but that this disincentive effect quickly falls to insignificant levels after six months. Household structure also appears to be an important determinant of the importance of the adverse effect of program participation.

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Bibliographic Info

Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number hal-00607219.

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Date of creation: 2009
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Publication status: Published, Labour Economics, 2009, 16, 171-182
Handle: RePEc:hal:cesptp:hal-00607219

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Keywords: unemploymentduration ; welfare programs ; durationmodels ; endogeneity;

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Cited by:
  1. Olivier Bargain & Karina Doorley, 2009. "Caught in the Trap? The Disincentive Effect of Social Assistance," Working Papers, Geary Institute, University College Dublin 200917, Geary Institute, University College Dublin.
  2. Leibbrandt, Murray & Lilenstein, Kezia & Shenker, Callie & Woolard, Ingrid, 2013. "The influence of social transfers on labour supply: A South African and international review," SALDRU Working Papers, Southern Africa Labour and Development Research Unit, University of Cape Town 112, Southern Africa Labour and Development Research Unit, University of Cape Town.
  3. Tomi Kyyrä & Ralf Wilke, 2014. "On the reliability of retrospective unemployment information in European household panel data," Empirical Economics, Springer, Springer, vol. 46(4), pages 1473-1493, June.
  4. 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.

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