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The Locking-in Effect of Subsidized Jobs

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  • van Ours, Jan C.

    ()
    (Tilburg University)

Abstract

Recent evaluations of active labor market policies are not very optimistic about their effectiveness to bring unemployed back to work. An important reason is that unemployed get locked-in, that is they reduce their effort to find a regular job. This paper uses an administrative dataset from the Slovak Republic on durations of individual unemployment spells. The focus of the analysis is temporary subsidized jobs. By exploiting the variation in the duration of these jobs it is possible to investigate whether or not the locking-in effect is important. It turns out that it is.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 527.

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Length: 40 pages
Date of creation: Jul 2002
Date of revision:
Publication status: published in: Journal of Comparative Economics, 2004, 32 (1), 37-55
Handle: RePEc:iza:izadps:dp527

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Keywords: unemployment; active labor market policy; duration models; subsidized jobs;

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References

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  1. Berg, Gerard J. van den & Klaauw, Bas van der & Ours, Jan C. van, 1998. "Punitive sanctions and the transition rate from welfare to work," Serie Research Memoranda, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics 0033, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  2. Lalive, Rafael & van Ours, Jan C & Zweimüller, Josef, 2000. "The Impact Of Active Labour Market Policies And Benefit Entitlement Rules On The Duration Of Unemployment," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2451, C.E.P.R. Discussion Papers.
  3. Van den Berg, Gerard J., 2000. "Duration Models: Specification, Identification, and Multiple Durations," MPRA Paper 9446, University Library of Munich, Germany.
  4. Lubyova, M. & Ours, J.C. van, 1997. "Unemployment dynamics in Eastern Europe; The case of Slovakia," Open Access publications from Tilburg University urn:nbn:nl:ui:12-86870, Tilburg University.
  5. repec:dgr:uvatin:2098076 is not listed on IDEAS
  6. Berg, G. van den & Klaauw, B. van der & Ours, J.C. van, 1998. "Punitive sanctions and the transition from welfare to work," Discussion Paper, Tilburg University, Center for Economic Research 1998-56, Tilburg University, Center for Economic Research.
  7. Martin, John P. & Grubb, David, 2001. "What works and for whom: a review of OECD countries' experiences with active labour market policies," Working Paper Series, IFAU - Institute for Evaluation of Labour Market and Education Policy 2001:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  8. repec:dgr:uvatin:1998076 is not listed on IDEAS
  9. Ours, J.C. van, 2000. "Do Active Labor Market Policies help Unemployed Workers to find and keep Regular Jobs," Discussion Paper, Tilburg University, Center for Economic Research 2000-10, Tilburg University, Center for Economic Research.
  10. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
  11. Bonnal, Liliane & Fougere, Denis & Serandon, Anne, 1997. "Evaluating the Impact of French Employment Policies on Individual Labour Market Histories," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 64(4), pages 683-713, October.
  12. Jaap H. Abbring & Gerard J. Berg & Jan C. Ours, 2005. "The Effect of Unemployment Insurance Sanctions on the Transition Rate from Unemployment to Employment," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 115(505), pages 602-630, 07.
  13. Boeri, Tito, 1997. "Labour-Market Reforms in Transition Economies," Oxford Review of Economic Policy, Oxford University Press, Oxford University Press, vol. 13(2), pages 126-40, Summer.
  14. Burda, Michael C & Lubyová, Martina, 1995. "The Impact of Active Labour Market Policies: A Closer Look at the Czech and Slovak Republics," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1102, C.E.P.R. Discussion Papers.
  15. Jan C. van Ours, 2000. "Do Active Labor Market Policies Help Unemployed Workers to Find and Keep Regular Jobs?," William Davidson Institute Working Papers Series 289, William Davidson Institute at the University of Michigan.
  16. Gritz, R. Mark, 1993. "The impact of training on the frequency and duration of employment," Journal of Econometrics, Elsevier, Elsevier, vol. 57(1-3), pages 21-51.
  17. Svejnar, Jan, 1999. "Labor markets in the transitional Central and East European economies," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 42, pages 2809-2857 Elsevier.
  18. Jaap H. Abbring & Gerard J. van den Berg, 2003. "The Nonparametric Identification of Treatment Effects in Duration Models," Econometrica, Econometric Society, Econometric Society, vol. 71(5), pages 1491-1517, 09.
  19. Calmfors, Lars & Forslund, Anders & Hemström, Maria, 2002. "Does active labour market policy work? Lessons from the Swedish experiences," Working Paper Series, IFAU - Institute for Evaluation of Labour Market and Education Policy 2002:4, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  20. Martina Lubyova & Jan C. van Ours, 1998. "Effects of Active Labor Market Programs on the Transition Rate from Unemployment into Regular Jobs in the Slovak Republic," William Davidson Institute Working Papers Series 213, William Davidson Institute at the University of Michigan.
  21. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, Econometric Society, vol. 52(2), pages 271-320, March.
  22. Martina Lubyova & Jan van Ours, 1998. "Work incentives and other effects of the transition to social assistance: Evidence from the Slovak Republic," Empirical Economics, Springer, Springer, vol. 23(1/2), pages 121-153.
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