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Active Labour Market Policies and Job Tenure

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  • Cockx, Bart
  • Van der Linden, Bruno
  • Karaa, Adel

Abstract

In this paper, the authors study the effect of subsidized on-the-job training, training for the unemployed, and pure wage subsidies on job tenure. Correcting for selection biases, they find that each of the labor-market policies increases the length of job tenure. Despite the sensitivity of the estimates to the parametric assumptions with respect to the unobservables, the effect of subsidized on-the-job training schemes is always found to be significantly positive. Training programs for the unemployed and pure wage subsidies always have a positive, but statistically nonsignificant, effect. The authors' results provide some support for human capital theories as opposed to matching theories. Copyright 1998 by Royal Economic Society.

Suggested Citation

  • Cockx, Bart & Van der Linden, Bruno & Karaa, Adel, 1998. "Active Labour Market Policies and Job Tenure," Oxford Economic Papers, Oxford University Press, vol. 50(4), pages 685-708, October.
    • Handle: RePEc:oup:oxecpp:v:50:y:1998:i:4:p:685-708
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    References listed on IDEAS

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