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

Abstract
Subsidised employment is one tool of active labour market policies to improve the chances of the unemployed to find permanent employment. Using informative individual data coming from various administrative sources 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 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 TEMP. We also find that compared to nonparticipation both programmes are unsuccessful for unemployed that find job easily anyway as well for those with short unemployment duration. For unemployed with potentially long unemployment duration and for actual long term unemployed, both programmes may have some positive effect, but the effect of TEMP is much larger.. Subsidised temporary job; employment programme; temporary work contracts; active labour market policies; matching on the propensity score; Switzerland

Publication details
Download http://econpapers.repec.org/cpd/2002/76_Gerfin.pdf
Repository RePEc (Germany)
Type preprint

Cited publications (4)
Alternative computational approaches to inference in the multinomial probit model
Korreferat zu R. Lalive, J. van Ours and J. Zweimüller: The Impact of Active Labor Market Policies and Benefit Entitlement Rules on the Duration of Unemployment (1999)
Identification and Estimation of Causal Effects of Multiple Treatments under the Conditional Independence Assumption (2001)
Some practical issues in the evaluation of heterogeneous labour market programmes by matching methods (2002)