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To work or not to work? Effects of temporary public employment on future employment and benefits

Eva Mörk (), Lillit Ottosson () and Ulrika Vikman ()
Additional contact information
Eva Mörk: Department of Economics, Uppsala University, Postal: Department of Economics; UCFS; UCLS, Urban Lab, Uppsala University
Lillit Ottosson: IFAU - Institute for Evaluation of Labour Market and Education Policy, Postal: Institute for Evaluation of Labour Market and Education Policy, P O Box 513, SE-751 20 Uppsala, Sweden

No 2021:12, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: We evaluate a temporary public sector employment program targeted at individuals with weak labor market attachment in the City of Stockholm. Having access to rich high-quality individuallevel administrative data, we apply dynamic inverse probability weighting, proposed by Van den Berg and Vikström (2021), to deal with dynamic selection into the program. We find that the program is successful in increasing employment and reducing social assistance. However, being at a regular workplace seems crucial: we find negative employment effects for participants engaged in outdoor cleaning at a workplace created especially for the program. In addition, we find that the decrease in social assistance recipiency to some extent is countered by an increase in the share receiving unemployment insurance benefits. This tendency is especially pronounced for the program with negative employment effects.

Keywords: Public sector employment programs; Social assistance; Cost-shifting; Dynamic inverse probability weighting (search for similar items in EconPapers)
JEL-codes: H75 I38 J45 (search for similar items in EconPapers)
Pages: 63 pages
Date: 2021-09-17
New Economics Papers: this item is included in nep-eur
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Working Paper: To Work or Not to Work? Effects of Temporary Public Employment on Future Employment and Benefits (2022) Downloads
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