Income Support Policies for Part-Time Workers: A Stepping-Stone to Regular Jobs? An Application to Young Long-Term Unemployed Women in Belgium
Ghent University - Sherppa - Faculty of Economics and Business Administration; IRES, Université Catholique de Louvain; Institute for the Study of Labor (IZA); CESifo (Center for Economic Studies and Ifo Institute)
Stéphane R. Robin
Recherche et Etudes Politiques Sociales, Santé, Habitat (CRESGE); Catholic University of Louvain (UCL) - Institut de Recherches Economiques et Sociales (IRES)
Centre for European Economic Research (ZEW); Catholic University of Louvain (UCL)
IZA Discussion Paper No. 2432
CESifo Working Paper Series No. 1863
We verify whether an income support policy for part-time workers in Belgium increases the transition from unemployment to non-subsidised, regular employment. Using a sample of 8630 long-term unemployed young women, whose labour market history is observed from 1998 to 2001, we implement the "timing of events" approach proposed by Abbring and Van den Berg (2003) to control for selection effects. Our results suggest that the policy has a significantly positive effect on the transition to non-subsidised employment when one does not control for unobserved heterogeneity. This effect remains positive, but becomes insignificant, when one corrects for selection on unobservable characteristics.
Number of Pages in PDF File: 22
Keywords: active labour market policies, evaluation, mixed proportional hazard models
JEL Classification: J64, J68, C41working papers series
Date posted: November 26, 2006
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