Does Subsidized Temporary Employment Get the Unemployed Back to Work? An Econometric Analysis of Two Different Schemes

Michael Lechner, Michael Gerfin and Heidi Stieger

No 3669, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Subsidized employment is an important tool of active labour market policies to improve the chances of the unemployed to find permanent employment. Using informative individual administrative data, we investigate the effects of two different schemes of subsidized temporary employment implemented in Switzerland. One scheme operates as a non-profit employment programme (EP), whereas the other one is a subsidy for temporary jobs (TEMP) in firms operating in competitive markets. Using econometric matching methods, we find that TEMP is considerably more successful in getting the unemployed back into work than EP. We also find that, compared to non-participation, both programmes are ineffective for unemployed who find jobs easily anyway, as well as for those with short unemployment duration. For unemployed with potentially long unemployment duration and for actual long term unemployed, both programmes may have positive effects, but the effect of TEMP is much larger.

Keywords: Subsidized temporary job; Employment programme; Temporary work contracts; Active labour market policies; Matching on the propensity score; Switzerland (search for similar items in EconPapers)
JEL-codes: J38 J68 (search for similar items in EconPapers)
Date: 2002-12
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

Downloads: (external link)
https://cepr.org/publications/DP3669 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Does subsidised temporary employment get the unemployed back to work? Aneconometric analysis of two different schemes (2005)
Working Paper: Does subsidised temporary employment get the unemployed back to work? An econometric analysis of two different schemes (2003)
Working Paper: Does subsidised temporary employment get the unemployed back to work? An econometric analysis of two different schemes (2002)
Working Paper: Does Subsidised Temporary Employment Get the Unemployed Back to Work? An Econometric Analysis of Two Different Schemes (2002)
Working Paper: Does subsidised temporary employment get the unemployed back to work? An econometric analysis of two different schemes (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:3669

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP3669

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().