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Is income support for part-time workers a steppingstone to regular jobs? An application to young long-term unemployed women

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Author Info
B. COCKX ()
C. GOEBEL
S. ROBIN

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Abstract

We verify whether income support for low-paid part-time workers in Belgium increases the transition from unemployment to non-subsidised, “regular” employment. Using a sample of long-term unemployed young women, whose labour market histories are observed from 1998 to 2001, we implement the “timing of events” method to control for selection effects. Our results suggest that the policy has a significantly positive effect on the transition to regular employment.

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Publisher Info
Paper provided by Ghent University, Faculty of Economics and Business Administration in its series Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium with number 09/561.

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Length: 28 pages
Date of creation: Jan 2009
Date of revision:
Handle: RePEc:rug:rugwps:09/561

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Related research
Keywords: Active labour market policies; Evaluation; Mixed Proportional Hazard Models Codes;

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Find related papers by JEL classification:
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy
C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis

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References listed on IDEAS
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  1. Gerfin, Michael & Lechner, Michael & Steiger, Heidi, 2002. "Does subsidised temporary employment get the unemployed back to work? An econometric analysis of two different schemes," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 A2-2, International Conferences on Panel Data. [Downloadable!]
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  2. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March. [Downloadable!] (restricted)
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  4. Maria Jepsen & Sile O'Dorchai & Robert Plasman & François Rycx, 2005. "The wage penalty induced by part-time work: the case of Belgium," Brussels Economic Review/Cahiers Economiques de Bruxelles, Editions du DULBEA, Université libre de Bruxelles, Department of Applied Economics (DULBEA), vol. 48(1-2), pages 73-94.
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  5. Bruce D. Meyer, 1995. "Lessons from the U.S. Unemployment Insurance Experiments," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 91-131, March. [Downloadable!] (restricted)
  6. Heckman, James J & Lochner, Lance & Taber, Christopher, 1998. "General-Equilibrium Treatment Effects: A Study of Tuition Policy," American Economic Review, American Economic Association, vol. 88(2), pages 381-86, May. [Downloadable!] (restricted)
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  7. Gagliarducci, Stefano, 2005. "The dynamics of repeated temporary jobs," Labour Economics, Elsevier, vol. 12(4), pages 429-448, August. [Downloadable!] (restricted)
  8. Joan R. Rodgers, 2004. "Hourly Wages of full-time and part-time employees in Australia," Australian Journal of Labour Economics (AJLE), The Centre for Labour Market Research (CLMR), Curtin Business School, vol. 7(2), pages 231-254, June.
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  10. Jaap H. Abbring & Gerard J. van den Berg, 2004. "Analyzing the effect of dynamically assigned treatments using duration models, binary treatment models, and panel data models," Empirical Economics, Springer, vol. 29(1), pages 5-20, January. [Downloadable!] (restricted)
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  11. Jaap H. Abbring & Gerard J. van den Berg, 2003. "The Nonparametric Identification of Treatment Effects in Duration Models," Econometrica, Econometric Society, vol. 71(5), pages 1491-1517, 09. [Downloadable!] (restricted)
  12. Jeffrey Grogger, 2005. "Welfare Reform, Returns to Experience, and Wages: Using Reservation Wages to Account for Sample Selection Bias," NBER Working Papers 11621, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  13. van Ours, Jan C., 2004. "The locking-in effect of subsidized jobs," Journal of Comparative Economics, Elsevier, vol. 32(1), pages 37-55, March. [Downloadable!] (restricted)
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  14. Michael Kvasnicka, 2005. "Does Temporary Agency Work Provide a Stepping Stone to Regular Employment?," Labor and Demography 0510005, EconWPA. [Downloadable!]
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  15. Alan Manning & Barbara Petrongolo, 2008. "The Part-Time Pay Penalty for Women in Britain," Economic Journal, Royal Economic Society, vol. 118(526), pages F28-F51, 02. [Downloadable!] (restricted)
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  16. Van den Berg, Gerard J., 2001. "Duration models: specification, identification and multiple durations," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 55, pages 3381-3460 Elsevier. [Downloadable!] (restricted)
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  17. McCormick, Barry, 1990. "A Theory of Signalling during Job Search, Employment Efficiency, and "Stigmatised" Jobs," Review of Economic Studies, Blackwell Publishing, vol. 57(2), pages 299-313, April. [Downloadable!] (restricted)
  18. Barry T. Hirsch, 2005. "Why do part-time workers earn less? The role of worker and job skills," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 58(4), pages 525-551, July. [Downloadable!] (restricted)
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  19. Inés Hardoy & Pål Schøne, 2006. "The Part-Time Wage Gap in Norway: How Large is It "Really"?," British Journal of Industrial Relations, Blackwell Publishers Ltd/London School of Economics, vol. 44(2), pages 263-282, 06. [Downloadable!] (restricted)
  20. David Card & Dean R. Hyslop, 2005. "Estimating the Effects of a Time-Limited Earnings Subsidy for Welfare-Leavers," Econometrica, Econometric Society, vol. 73(6), pages 1723-1770, November. [Downloadable!] (restricted)
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