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Active Labour Market Policies and Job Tenure

Listed author(s):
  • Cockx, Bart
  • Van der Linden, Bruno
  • Karaa, Adel

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.

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Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 50 (1998)
Issue (Month): 4 (October)
Pages: 685-708

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Handle: RePEc:oup:oxecpp:v:50:y:1998:i:4:p:685-708
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  16. SNEESSENS, Henri R. & SHADMAN-MEHTA, Fatemeh, 1994. "Real Wages, Skill Mismatch and Unemployment Persistence," CORE Discussion Papers 1994050, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  17. Gritz, R. Mark, 1993. "The impact of training on the frequency and duration of employment," Journal of Econometrics, Elsevier, vol. 57(1-3), pages 21-51.
  18. Dubin, Jeffrey A. & Rivers, Douglas, 1993. "Experimental estimates of the impact of wage subsidies," Journal of Econometrics, Elsevier, vol. 56(1-2), pages 219-242, March.
  19. Worswick,G. D. N., 1991. "Unemployment: A Problem of Policy," Cambridge Books, Cambridge University Press, number 9780521400343, Diciembre.
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  23. Albert Ma, Ching-to & Weiss, Andrew M., 1993. "A signaling theory of unemployment," European Economic Review, Elsevier, vol. 37(1), pages 135-157, January.
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  27. Jovanovic, Boyan, 1979. "Firm-specific Capital and Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1246-1260, December.
  28. DREZE, Jacques H. & SNEESSENS, Henri, 1994. "Technical Development, Competition from Low-Wage Economies and Low-Skilled Unemployment," CORE Discussion Papers 1994036, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  29. Greenhalgh, Christine & Stewart, Mark, 1987. "The Effects and Determinants of Training," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 49(2), pages 171-190, May.
  30. Gary Burtless, 1985. "Are Targeted Wage Subsidies Harmful? Evidence from a Wage Voucher Experiment," ILR Review, Cornell University, ILR School, vol. 39(1), pages 105-114, October.
  31. LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-620, September.
  32. Nickell, S., 1991. "Wages, Unemployment and Population Change," Economics Series Working Papers 99122, University of Oxford, Department of Economics.
  33. Barron, John M & Black, Dan A & Loewenstein, Mark A, 1989. "Job Matching and On-the-Job Training," Journal of Labor Economics, University of Chicago Press, vol. 7(1), pages 1-19, January.
  34. Ackum, Susanne, 1991. " Youth Unemployment, Labor Market Programs and Subsequent Earnings," Scandinavian Journal of Economics, Wiley Blackwell, vol. 93(4), pages 531-543.
  35. Lynch, Lisa M, 1991. "The Role of Off-the-Job vs. On-the-Job Training for the Mobility of Women Workers," American Economic Review, American Economic Association, vol. 81(2), pages 151-156, May.
  36. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, Oxford University Press, vol. 87(3), pages 355-374.
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