Discussion Paper Details

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Title: The Locking-in Effect of Subsidized Jobs

Author(s): Jan C. van Ours

Publication Date: August 2002

Keyword(s): active labour market policy, duration models, subsidized jobs and unemployment

Programme Area(s): Labour Economics and Transition Economics

Abstract: Recent evaluations of active labour market policies are not very optimistic about their effectiveness to bring unemployed back to work. An important reason is that unemployed get locked-in, that is they reduce their effort to find a regular job. This Paper uses an administrative data set from the Slovak Republic on durations of individual unemployment spells. The focus of the analysis is temporary subsidized jobs. By exploiting the variation in the duration of these jobs it is possible to investigate whether or not the locking-in effect is important. It turns out that it is.

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Bibliographic Reference

van Ours, J. 2002. 'The Locking-in Effect of Subsidized Jobs'. London, Centre for Economic Policy Research.