Does Subsidised Temporary Employment Get the Unemployed Back to Work? An Econometric Analysis of Two Different Schemes

By M. Gerfin, M. Lechner, Heidi Steiger. Social Science Research Network, 2002

182 citations recorded by the source corpus.

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.

Subfields: Economics and Econometrics

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Citations in the corpus

Do Employment Subsidies Work? Evidence from Regionally Targeted Subsidies in Turkey (2010, background): “Gerfin et al. (2005) examine the effectiveness of two different temporary employment subsidy schemes to get the unemployed back to work.”
Active Labor Market Policies (2016, background): “…in postconflict situations in developing countries, where many young people affected by war remain 7For example, Caliendo et al. (2005), Brodaty et al. (2002), and Gerfin et al. (2005) simultaneously evaluate both types of programs Bloom (2010) provides information on socalled transitional jobs.”
Unobservable, but unimportant? The relevance of usually unobserved variables for the evaluation of labor market policies☆ (2017, methodology): “3 For example Gerfin et al. (2005) for Switzerland, Sianesi (2004) for Sweden, and Lechner et al. (2011) and Biewen et al. (2014) for Germany, use comprehensive administrative data in order to evaluate ALMP programs in (Western) European countries.”
From Temporary Help Jobs to Permanent Employment: What Can We Learn from Matching Estimators and Their Sensitivity? (2008, unknown): “Malo and Munoz-Bullon (2002) for Spain; Anderson and Wadensj¨o (2004) for Sweden; Lane et al. (2003) for the US; Gerfin, Lechner and Steiger (2002) for Switzerland; and Booth, Francesconi and Frank (2002) for UK.”
Unemployed and their caseworkers: should they be friends or foes? (2010, unknown): “So far, the role of increased monitoring has been examined in Meyer (1995), Gorter and Kalb (1996), and Dolton and O'Neill (1996), who found significant positive effects of monitoring in the USA, Netherlands, and the UK, respectively.”