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Does subsidised temporary employment get the unemployed back to work? An econometric analysis of two different schemes

abstract Not available in German. Subsidised employment is an important tool of active labour market policies to improve the chances of the unemployed to find permanent employment. Using informative individual administrative data we investigate the effects of two different schemes of subsidised temporary employment implemented in Switzerland. One scheme operates as a non-profit employment programme (EP), whereas the other one is a subsidy for temporary jobs (TEMP) in firms operating in competitive markets. Using econometric matching methods we find that TEMP is considerably more successful in getting the unemployed back into work than EP. We also find that compared to nonparticipation both programmes are ineffective for unemployed who find job easily anyway as well as for those with short unemployment duration. For unemployed with potentially long unemployment duration and for actual long term unemployed, both programmes may have positive effects, but the effect of TEMP is much larger.
(doi:10.1016/j.labeco.2004.04.002)
   
type journal paper
   
keywords subsidised temporary job
   
language English
kind of paper journal article
date of appearance 1-12-2005
journal Labour Economics
publisher North-Holland (Amsterdam)
ISSN 0927-5371
volume of journal 12
number of issue 6
page(s) 807-835
review not reviewed
   
citation Gerfin, M., Lechner, M., & Steiger, H. (2005). Does subsidised temporary employment get the unemployed back to work? An econometric analysis of two different schemes. Labour Economics, 12(6), 807-835.