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Income Support Policies for Part-Time Workers: A Stepping-Stone to Regular Jobs? An Application to Young Long-Term Unemployed Women in Belgium

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  • Bart Cockx
  • Stéphane Robin
  • Christian Goebel

Abstract

We verify whether an income support policy for part-time workers in Belgium increases the transition from unemployment to non-subsidised, “regular” employment. Using a sample of 8630 long-term unemployed young women, whose labour market history is observed from 1998 to 2001, we implement the “timing of events” approach proposed by Abbring and Van den Berg (2003) to control for selection effects. Our results suggest that the policy has a significantly positive effect on the transition to non-subsidised employment when one does not control for unobserved heterogeneity. This effect remains positive, but becomes insignificant, when one corrects for selection on unobservable characteristics.

Suggested Citation

  • Bart Cockx & Stéphane Robin & Christian Goebel, 2006. "Income Support Policies for Part-Time Workers: A Stepping-Stone to Regular Jobs? An Application to Young Long-Term Unemployed Women in Belgium," CESifo Working Paper Series 1863, CESifo.
  • Handle: RePEc:ces:ceswps:_1863
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    Cited by:

    1. Bernd Fitzenberger & Michael Lechner & Jeffrey Smith, 2013. "Estimation of treatment effects: recent developments and applications," Empirical Economics, Springer, vol. 44(1), pages 1-11, February.
    2. Wolff, Joachim & Nivorozhkin, Anton, 2012. "Give them a break! Did activation of young welfare recipients overshoot in Germany? (A regression discontinuity analysis)," VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62046, Verein für Socialpolitik / German Economic Association.
    3. Baert, Stijn & Cockx, Bart & Verhaest, Dieter, 2013. "Overeducation at the start of the career: Stepping stone or trap?," Labour Economics, Elsevier, vol. 25(C), pages 123-140.
    4. Werner Eichhorst & Tito Boeri & Michela Braga & An de Coen & Galasso Vicenzo & Maarten Gerard & Michael J. Kendzia & Christine Mayrhuber & Jakob Louis Pedersen & Ricarda Schmidl & Nadia Steiber, 2013. "Combining the Entry of Young People in the Labour Market with the Retention of Older Workers," WIFO Studies, WIFO, number 46988, December.
    5. Marco Caliendo & Ricarda Schmidl, 2016. "Youth unemployment and active labor market policies in Europe," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-30, December.
    6. Florent Fremigacci & Antoine Terracol, 2013. "Subsidized temporary jobs: lock-in and stepping stone effects," Applied Economics, Taylor & Francis Journals, vol. 45(33), pages 4719-4732, November.
    7. Susanne Ek Spector, 2015. "Should unemployment insurance cover partial unemployment?," IZA World of Labor, Institute of Labor Economics (IZA), pages 199-199, October.
    8. Joel Karlsson & Jonas Månsson, 2014. "Getting a full-time job as a part-time unemployed: How much does spatial context matter?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 179-195, August.
    9. Rune Lesner, 2015. "Does labor market history matter?," Empirical Economics, Springer, vol. 48(4), pages 1327-1364, June.

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    More about this item

    Keywords

    active labour market policies; evaluation; mixed proportional hazard models;
    All these keywords.

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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