The latin model of welfare: Do ‘insertion contracts’ reduce long-term dependence? |
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Authors: | Luis Ayala Magdalena Rodríguez |
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Institution: | aFacultad de Ciencias Jurídicas y Sociales, Universidad Rey Juan Carlos, Paseo Artilleros s/n, 28032 Madrid, Spain;bInstituto de Estudios Fiscales, Cardenal Herrera Oria 378, 28035 Madrid, Spain |
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Abstract: | This paper aims to present an assessment of the welfare policies implemented in most South European countries. Welfare programs in these countries try to combine a basic level of economic protection and measures favoring life and labor skills (‘insertion benefits’) of low-income households. We focus on a specific program set up with the twofold strategy of cash and ‘insertion benefits’ (Madrid's IMI) and, more precisely, on the so-called ‘insertion projects’, consisting in a gradual mix of job search assistance, training and subsidized jobs. We evaluate the effects of these ‘insertion projects’ on welfare recidivism and the duration of off-welfare spells using propensity score-matching methods. Our results suggest that propensity score estimators appear to reduce selectivity due to non-random participation. Both recidivism rates as well as the duration of off-welfare spells suggest potentially successful interventions. |
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Keywords: | Welfare Recidivism Insertion contracts Propensity score |
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