Social Employment of Welfare Recipients in Belgium: An Evaluation

Bart Leo Wim Cockx () and Geert Ridder ()

Economic Journal, 2001, vol. 111, issue 470, pages 322-52

Abstract: In Belgium, welfare agencies receive a subsidy to employ welfare recipients for a period sufficiently long to entitle them to unemployment benefits. We investigate the effect of this programme on the exit rate from welfare. We propose a grouping/IV estimator of the programme effect that eliminates selection bias. The estimator is consistent, even if the selection into the programme depends on the average unobserved characteristics of welfare recipients in a region and in a welfare duration interval. Without correction for selectivity we find that the programme reduces welfare dependence, but after correction this conclusion is reversed.

Date: 2001
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Related works:
Working Paper: Social Employment of Welfare Recipients in Belgium: An Evaluation (1999)
Working Paper: Social employment of welfare recipients in Belgium: an evaluation (1996)
Working Paper: Social Employment Of Welfare Recipients In Belgium: An Evaluation (2000)
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