The Locking-in Effect of Subsidized Jobs

Jan van Ours

No 3489, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Recent evaluations of active labour 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 data set 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 labour market policy; Duration models; Subsidized jobs (search for similar items in EconPapers)
JEL-codes: C41 J68 (search for similar items in EconPapers)
Date: 2002-08
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: The locking-in effect of subsidized jobs (2004)
Working Paper: The Locking-in Effect of Subsidized Jobs (2002)
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