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The Effects of a Job Creation Scheme. Evidence from Regional Variation in Programme Capacities

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  • Rainer Eppel

    (WIFO)

Abstract

In direct job creation schemes, unemployed individuals at risk of permanent labour market exclusion are offered temporary subsidised employment in public or non-profit sector firms in combination with skills training and socio-pedagogical support. The main aim is to stabilise and qualify them for later re-integration into the regular labour market. Exploiting exogenous regional variation in population-group-specific programme capacities, I find evidence that such a job creation scheme is, on average, effective in providing a bridge to a regular job. The achieved integration is, however, often not stable. Successful participants face a high risk of once again becoming unemployed.

Suggested Citation

  • Rainer Eppel, 2014. "The Effects of a Job Creation Scheme. Evidence from Regional Variation in Programme Capacities," WIFO Working Papers 489, WIFO.
    • Handle: RePEc:wfo:wpaper:y:2014:i:489
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    File URL: https://www.wifo.ac.at/wwa/pubid/50877
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    References listed on IDEAS

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    1. Frölich, Markus & Lechner, Michael, 2010. "Exploiting Regional Treatment Intensity for the Evaluation of Labor Market Policies," Journal of the American Statistical Association, American Statistical Association, vol. 105(491), pages 1014-1029.
    2. Rainer Eppel & Thomas Horvath & Manuel Lackner & Helmut Mahringer & Trude Hausegger & Isabella Hager & Christine Reidl & Andrea Reiter & Sara Scheiflinger & Michaela Friedl-Schafferhans, 2014. "Evaluierung von Sozialen Unternehmen im Kontext neuer Herausforderungen. Materialband," WIFO Studies, WIFO, number 50691, February.
    3. Rainer Eppel & Thomas Horvath & Manuel Lackner & Helmut Mahringer & Trude Hausegger & Isabella Hager & Christine Reidl & Andrea Reiter & Sara Scheiflinger & Michaela Friedl-Schafferhans, 2014. "Evaluierung von Sozialen Unternehmen im Kontext neuer Herausforderungen," WIFO Studies, WIFO, number 50690, February.
    4. Rainer Eppel & Helmut Mahringer, 2013. "Do Wage Subsidies Work in Boosting Economic Inclusion? Evidence on Effect Heterogeneity in Austria," WIFO Working Papers 456, WIFO.
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