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Does subsidised temporary employment get the unemployed back to work? An econometric analysis of two different schemes

Author

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  • Gerfin, Michael

    (Department of Economics, University of Bern)

  • Lechner, Michael

    (Swiss Institute for International Economics and Applied Economic Research (SIAW), University of St. Gallen)

  • Steiger, Heidi

    (Swiss Institute for International Economics and Applied Economic Research (SIAW), University of St. Gallen)

Abstract

Subsidised employment is one tool of active labour market policies to improve the chances of the unemployed to find permanent employment. Using informative individual data coming from various administrative sources we investigate the effects of two different schemes of subsidised temporary employment implemented in Switzerland. One scheme operates as a non-profit employment programme (EP), whereas the other is a subsidy for temporary jobs (TEMP) in firms operating in competitive markets. Using econometric matching methods we find that TEMP is considerably more successful in getting the unemployed back into work than TEMP. We also find that compared to nonparticipation both programmes are unsuccessful for unemployed that find job easily anyway as well for those with short unemployment duration. For unemployed with potentially long unemployment duration and for actual long term unemployed, both programmes may have some positive effect, but the effect of TEMP is much larger.

Suggested Citation

  • Gerfin, Michael & Lechner, Michael & Steiger, Heidi, 2002. "Does subsidised temporary employment get the unemployed back to work? An econometric analysis of two different schemes," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 A2-2, International Conferences on Panel Data.
  • Handle: RePEc:cpd:pd2002:a2-2
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    More about this item

    Keywords

    Subsidised temporary job; employment programme; temporary work contracts; active labour market policies; matching on the propensity score; Switzerland;
    All these keywords.

    JEL classification:

    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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