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The effect of temporary employment subsidies on employment duration

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  • Christian, GOEBEL

Abstract

In this paper we estimate the impact of temporary employment subsidies for young long-)term unemployed workers in Belgium on the transition rate from employment to non-employment. We account for selective participation on the basis of a multivariate duration model with correlated unobserved heterogeneity. Our estimates indicate that the policy decreases the transition rate from employment to non-employment in the first year of participation. There is no signification effect on the transition rates in the second year and after participation.

Suggested Citation

  • Christian, GOEBEL, 2006. "The effect of temporary employment subsidies on employment duration," Discussion Papers (ECON - Département des Sciences Economiques) 2006035, Université catholique de Louvain, Département des Sciences Economiques.
    • Handle: RePEc:ctl:louvec:2006035
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    File URL: http://sites.uclouvain.be/econ/DP/IRES/2006-35.pdf
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    References listed on IDEAS

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    Cited by:

    1. Stephan, Gesine, 2010. "Wages, Employment and Tenure of Temporarily Subsidized Workers: Does the Industry Matter?," IZA Discussion Papers 5078, Institute of Labor Economics (IZA).
    2. Stephan, Gesine, 2010. "Wages, employment and tenure of temporarily subsidized workers: Does the industry matter? (Löhne, Beschäftigung und Betriebszugehörigkeitsdauer von zeitweise subventionierten Arbeitnehmern: Spielt die," IAB-Discussion Paper 201012, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Stephan, Gesine, 2010. "Employer wage subsidies and wages in Germany : empirical evidence from individual data," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 43(1), pages 53-71.
    4. Stephan, Gesine, 2010. "Employer wage subsidies and wages in Germany : empirical evidence from individual data," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 43(1), pages 53-71.

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    More about this item

    Keywords

    Evaluation; Subsidised employment; MMPH; employment duration;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • 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
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

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