Income Support Policies for Part-Time Workers: A Stepping-Stone to Regular Jobs? An Application to Young Long-Term Unemployed Women in Belgium

22 Pages Posted: 26 Nov 2006

See all articles by Bart Cockx

Bart Cockx

Ghent University - Sherppa - Faculty of Economics and Business Administration; Institute for the Study of Labor (IZA); CESifo (Center for Economic Studies and Ifo Institute); IRES, Université Catholique de Louvain

Stéphane R. Robin

Recherche et Etudes Politiques Sociales, Santé, Habitat (CRESGE); Catholic University of Louvain (UCL) - Institut de Recherches Economiques et Sociales (IRES)

Christian Goebel

Catholic University of Louvain (UCL); ZEW – Leibniz Centre for European Economic Research

Date Written: December 2006

Abstract

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.

Keywords: active labour market policies, evaluation, mixed proportional hazard models

JEL Classification: J64, J68, C41

Suggested Citation

Cockx, Bart L. W. and Robin, Stéphane R. and Goebel, Christian and Goebel, Christian, Income Support Policies for Part-Time Workers: A Stepping-Stone to Regular Jobs? An Application to Young Long-Term Unemployed Women in Belgium (December 2006). IZA Discussion Paper No. 2432, CESifo Working Paper Series No. 1863, Available at SSRN: https://ssrn.com/abstract=947095 or http://dx.doi.org/10.2139/ssrn.947095

Bart L. W. Cockx (Contact Author)

Ghent University - Sherppa - Faculty of Economics and Business Administration ( email )

Ghent, B-9000
Belgium

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

IRES, Université Catholique de Louvain

Place Montesquieu, 3
Louvain-la-Neuve
Belgium

Stéphane R. Robin

Recherche et Etudes Politiques Sociales, Santé, Habitat (CRESGE) ( email )

France

Catholic University of Louvain (UCL) - Institut de Recherches Economiques et Sociales (IRES) ( email )

3, Place Montesquieu
1348 Louvain-la-Neuve
Belgium

Christian Goebel

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Catholic University of Louvain (UCL) ( email )

Place Montesquieu, 3
Louvain-la-Neuve, 1348
Belgium

HOME PAGE: http://homepages.econ.ucl.ac.be/goebel/

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