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

Michael Gerfin (), Michael Lechner and Heidi Steiger ()
Additional contact information
Michael Gerfin: University of Bern
Heidi Steiger: University of St. Gallen

No 606, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Subsidised 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 subsidised 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 nonparticipation both programmes are ineffective for unemployed who find job 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: Switzerland; matching on the propensity score; subsidised temporary job; employment programme; temporary work contracts; active labour market policies (search for similar items in EconPapers)
JEL-codes: J38 J68 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2002-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Published - published in: Labour Economics, 2005, 12 (6), 807-835

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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 Subsidized 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)
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