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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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    References listed on IDEAS

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    2. Wifo, 2017. "WIFO-Monatsberichte, Heft 6/2017," WIFO Monatsberichte (monthly reports), WIFO, vol. 90(6), June.
    3. Miroslav Štefánik & Katarína Karasová & Ivana Studená, 2020. "Can supporting workplace insertions of unemployed recent graduates improve their long-term employability?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 47(2), pages 245-265, May.
    4. Julia Lang, 2022. "Employment effects of language training for unemployed immigrants," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(2), pages 719-754, April.
    5. Rainer Eppel & Ulrike Famira-Mühlberger & Thomas Horvath & Ulrike Huemer & Helmut Mahringer & Hubert Eichmann & Julia Eibl, 2018. "Anstieg und Verfestigung der Arbeitslosigkeit seit der Wirtschaftskrise. Entwicklung, Ursachen und die Rolle der betrieblichen Personalrekrutierung – Synthesebericht," WIFO Studies, WIFO, number 62228.
    6. Lang, Julia, 2018. "Employment effects of language training for unemployed immigrants," IAB-Discussion Paper 201821, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. Rainer Eppel & Ulrike Famira-Mühlberger & Thomas Horvath & Ulrike Huemer & Helmut Mahringer, 2018. "Anstieg und Verfestigung der Arbeitslosigkeit seit der Wirtschaftskrise. Entwicklung, Ursachen und Handlungsansätze," WIFO Studies, WIFO, number 62227.
    8. Rainer Eppel & Helmut Mahringer & Petra Sauer, 2017. "Österreich 2025 – Arbeitslosigkeit und die Rolle der aktiven Arbeitsmarktpolitik," WIFO Monatsberichte (monthly reports), WIFO, vol. 90(6), pages 493-505, June.

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