The Locking-In Effect of Subsidized Jobs

39 Pages Posted: 30 Jul 2002

See all articles by Jan C. van Ours

Jan C. van Ours

Tilburg University - Department of Economics; University of Melbourne - Department of Economics

Multiple version iconThere are 3 versions of this paper

Date Written: July 2002

Abstract

Recent evaluations of active labor 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.

Keywords: Unemployment, Active Labor Market Policy, Subsidized Jobs, Duration Models

JEL Classification: J68, C41

Suggested Citation

van Ours, Jan C., The Locking-In Effect of Subsidized Jobs (July 2002). IZA Discussion Paper No. 527; Paper will be presented at the Annual Conference on Transition Economics; WDI Working Paper No. 474. Available at SSRN: https://ssrn.com/abstract=310021

Jan C. Van Ours (Contact Author)

Tilburg University - Department of Economics ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands
+31 13 466 2880 (Phone)
+31 13 466 3042 (Fax)

University of Melbourne - Department of Economics ( email )

Melbourne, 3010
Australia

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