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Does subsidised temporary employment get the unemployment back to work?: an econometric analysis of two different schemes
In: Discussion paper series 606
Swiss Unemployment Insurance Micro Data
In: Schmollers Jahrbuch: journal of contextual economics, Band 124, Heft 1, S. 175-181
ISSN: 1865-5742
"Administrative data of the unemployment insurance system in Switzerland have been made available by the Swiss State Secretariat for Economic Affairs (seco) for specific research purposes. They contain rich Information about unemployed and job seekers. The records are linked to social security data. The combination of the two sources leads to a very rich database. This paper describes the data as well as some administrative procedures generating it." (author's abstract)
Does Subsidised Temporary Employment Get the Unemployed Back to Work? An Econometric Analysis of Two Different Schemes
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.
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