Active Labour Market Policies and Job Tenure
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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Volume (Year): 50 (1998)
Issue (Month): 4 (October)
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