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Social Employment Of Welfare Recipients In Belgium: An Evaluation

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  • Bart Cockx
  • Geert Ridder

Abstract

In Belgium welfare agencies receive a subsidy to employ welfare recipients for a period sufficiently long to entitle them to unemployment benefits This work experience program is called Social Employment (SE) We investigate the effect of SE on the exit rate from welfare We propose a grouping/IV estimator of the SE effect that eliminates selection bias The estimator is consistent even if the selection into SE depends on the average unobserved characteristics of welfare recipients in a region and in a welfare duration interval The empirical analysis suggests that there is creaming in the selection process Without correction for selectivity we find that SE reduces welfare dependence but after correction this conclusion is reversed These results are consistent with the adverse incentives faced by the welfare agencies

Suggested Citation

  • Bart Cockx & Geert Ridder, 2000. "Social Employment Of Welfare Recipients In Belgium: An Evaluation," Economics Working Paper Archive 425, The Johns Hopkins University,Department of Economics.
    • Handle: RePEc:jhu:papers:425
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    2. Mörk, Eva & Ottosson, Lillit & Vikman, Ulrika, 2021. "To work or not to work? Effects of temporary public employment on future employment and benefits," Working Paper Series 2021:12, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    3. Eichler, Martin & Lechner, Michael, 2002. "An evaluation of public employment programmes in the East German State of Sachsen-Anhalt," Labour Economics, Elsevier, vol. 9(2), pages 143-186, April.
    4. Hagen, Tobias, 2003. "Three Approaches to the Evaluation of Active Labour Market Policy in East Germany Using Regional Data," ZEW Discussion Papers 03-27, ZEW - Leibniz Centre for European Economic Research.
    5. Sam Desiere & Bart Cockx, 2021. "How Effective Are Hiring Subsidies to Reduce Long-Term Unemployment among Prime-Aged Jobseekers? Evidence from Belgium," CESifo Working Paper Series 9325, CESifo.
    6. Bergemann, Annette & Pohlan, Laura & Uhlendorff, Arne, 2017. "The impact of participation in job creation schemes in turbulent times," Labour Economics, Elsevier, vol. 47(C), pages 182-201.
    7. Bart COCKX & Muriel DEJEMEPPE, 2010. "The Threat of Monitoring Job Search. A Discontinuity Design," LIDAM Discussion Papers IRES 2010041, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    8. Gert Bijnens & Natalia Bermudez & Bart Cockx, 2025. "The impact of short-time work during the great recession," Working Paper Research 481, National Bank of Belgium.
    9. Muriel Dejemeppe, 2005. "A Complete Decomposition of Unemployment Dynamics using Longitudinal Grouped Duration Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 67(1), pages 47-70, February.
    10. Michael White and Genevieve Knight, 2003. "Benchmarking the effectiveness of NDYP: A review of European and US literature on the microeconomic effects of labour market programmes for young people," PSI Research Discussion Series 10, Policy Studies Institute, UK.
    11. van den Berg, G. & van der Klaauw, B. & van Ours, J.C., 1998. "Punitive sanctions and the transition from welfare to work," Other publications TiSEM cfce4d32-1348-4f9a-ab86-e, Tilburg University, School of Economics and Management.
    12. Bart Cockx & Muriel Dejemeppe, 2005. "Duration dependence in the exit rate out of unemployment in Belgium. Is it true or spurious?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 1-23, January.
    13. Cockx, Bart, 1999. "The Design of Active Labour Market Policies. What Matters and What Doesn't ?," LIDAM Discussion Papers IRES 1999035, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    14. Gerard J. van den Berg & Bas van der Klaauw & Jan C. van Ours, 2004. "Punitive Sanctions and the Transition Rate from Welfare to Work," Journal of Labor Economics, University of Chicago Press, vol. 22(1), pages 211-241, January.
    15. Bart Cockx & Christian Goebel & Stéphane Robin, 2013. "Can income support for part-time workers serve as a stepping-stone to regular jobs? An application to young long-term unemployed women," Empirical Economics, Springer, vol. 44(1), pages 189-229, February.
    16. Bart COCKX, 2000. "The design of active labour market policies: Building in effective incentives," International Labour Review, International Labour Organization, vol. 139(4), pages 457-480, December.
    17. Muriel Dejemeppe & Bruno Van der Linden & Andrey Launov & Bart Cockx, 2011. "Monitoring and Sanctions in a Non-Stationary Structural Job-Search Model," 2011 Meeting Papers 501, Society for Economic Dynamics.
    18. Cockx, Bart & Brasseur, Carine, 2003. "The demand for physician services: Evidence from a natural experiment," Journal of Health Economics, Elsevier, vol. 22(6), pages 881-913, November.
    19. Bergemann, Annette & Pohlan, Laura & Uhlendorff, Arne, 2016. "Job Creation Schemes in Turbulent Times," IZA Discussion Papers 10369, Institute of Labor Economics (IZA).
    20. Viktor Steiner & Tobias Hagen, 2002. "Was kann die Aktive Arbeitsmarktpolitik in Deutschland aus der Evaluationsforschung in anderen europäischen Ländern lernen?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 3(2), pages 189-206, May.
    21. Cockx, Bart & Bardoulat, Isabelle, 1999. "Vocational Training: Does it speed up the Transition Rate out of Unemployment ?," LIDAM Discussion Papers IRES 1999032, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    22. Betcherman, Gordon & Olivas, Karina & Dar, Amit, 2004. "Impacts of active labor market programs : new evidence from evaluations with particular attention to developing and transition countries," Social Protection Discussion Papers and Notes 29142, The World Bank.

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