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Income support policies for part-time workers : a stepping-stone to regular jobs ? An application to young long-terme unemployed women in Belgium

  • Bart, COCKX

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics)

  • Stéphane, ROBIN
  • Christian, GOEBEL

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 byAbbring et 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.

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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 2006050.

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Length: 20
Date of creation: 01 Dec 2006
Date of revision:
Handle: RePEc:ctl:louvec:2006050
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