Hiring young, unskilled workers on subsidized open-ended contracts: a good integration programme?

Muriel Roger and Philippe Zamora
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Philippe Zamora: CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique

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Abstract: Young labour-market entrants account for a high level of unemployment and short-term contracts. In July 2002, the French government moved to reduce this insecurity at the start of working life by introducing the Youth-in-business Contract (Contrat Jeune en Entreprise), a new contract for young people under 22 years old who dropped out of school before passing their final secondary school examinations. Under this scheme, firms were entitled to claim a subsidy when they hired an eligible young worker on an open-ended contract. We assess the impact of the Youth-in-business Contract on transitions to permanent employment by estimating a dynamic difference-in-difference model drawing on the French Labour Force Survey. We use a new method, inspired by Keane and Sauer (2009), to deal with measurement errors in the data. We find that programme eligibility has no effect on transitions to permanent employment in a recession environment.

Keywords: Active labour-market policies; Youth unemployment; Evaluation; Measurement error; Permanent contract; Employment subsidies (search for similar items in EconPapers)
Date: 2011-06
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Citations: View citations in EconPapers (6)

Published in Oxford Review of Economic Policy, 2011, 27 (2), pp.380-396. ⟨10.1093/oxrep/grr016⟩

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Journal Article: Hiring young, unskilled workers on subsidized open-ended contracts: a good integration programme? (2011)
Working Paper: Hiring young, unskilled workers on subsidized open-ended contracts: a good integration programme? (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00754538

DOI: 10.1093/oxrep/grr016

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