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The effect of temporary employment subsidies on employment duration

  • Christian, GOEBEL

In this paper we estimate the impact of temporary employment subsidies for young long-)term unemployed workers in Belgium on the transition rate from employment to non-employment. We account for selective participation on the basis of a multivariate duration model with correlated unobserved heterogeneity. Our estimates indicate that the policy decreases the transition rate from employment to non-employment in the first year of participation. There is no signification effect on the transition rates in the second year and after participation.

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Paper provided by Université catholique de Louvain, Département des Sciences Economiques in its series Discussion Papers (ECON - Département des Sciences Economiques) with number 2006035.

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Length: 43
Date of creation: 01 Jan 2006
Date of revision:
Handle: RePEc:ctl:louvec:2006035
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  17. Bart Cockx & Jean Ries, 2004. "The Exhaustion of Unemployment Benefits in Belgium. Does it Enhance the Probability of Employment?," CESifo Working Paper Series 1226, CESifo Group Munich.
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