Active labour market policies and job tenure |
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| Authors: | Cockx, Bart Linden, Bruno Van der Karaa, Adel |
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| Affiliation: | * Institut de Recherches Economiques et Sociales, Département des Sciences Economiques, Université Catholique de Louvain Belgium
!["{dagger}"]("/math/dagger.gif") Fonds National de la Recherche Scientifique and Institut de Recherches Economiques et Sociales, Département des Sciences Economiques, Université Catholique de Louvain 3 place Montesquieu, 1348 Louvain–la–Neuve, Belgium
!["{ddagger}"]("/math/Dagger.gif") Human Capital and Mobility fellow at the Institut de Recherches Economiques et Sociales during the research presented in this paper |
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| Abstract: | In this paper, we study the effect of subsidised on-the-jobtraining, training for the unemployed and pure wage subsidieson job tenure. Correcting for selection biases, we find thateach of the labour market policies increases the length of jobtenure. Despite the sensitivity of the estimates to the parametricassumptions with respect to the unobservables, the effect ofsubsidised on-the-job training schemes is always found to besignificantly positive. Training programs for the unemployedand pure wage subsidies always have a positive, but statisticallynon-significant effect Our results provide some support forhuman capital theories as opposed to matching theories. |
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