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The locking-in effect of subsidized jobs

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  • van Ours, Jan C.

Abstract

Recent evaluations of active lab or market policies are not very optimistic about their effectiveness to bring unemployed back to work. An important reason is that unemployed get locked-in, that is they reduce their effort to find a regular job. This paper uses an administrative dataset from the Slovak Republic on durations of individual unemployment spells. The focus of the analysis is temporary subsidized jobs. By exploiting the variation in the duration of these jobs it is possible to investigate whether or not the locking-in effect is important. It turns out that it is.
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Suggested Citation

  • van Ours, Jan C., 2004. "The locking-in effect of subsidized jobs," Journal of Comparative Economics, Elsevier, vol. 32(1), pages 37-55, March.
    • Handle: RePEc:eee:jcecon:v:32:y:2004:i:1:p:37-55
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    1. 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.
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    7. Lalive, R. & van Ours, J.C. & Zweimüller, J., 2000. "The Impact of Active Labor Market Programs and Benefit Entitlement Rules on the Duration of Unemployment," Discussion Paper 2000-41, Tilburg University, Center for Economic Research.
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    More about this item

    JEL classification:

    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

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