Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/25908 
Year of Publication: 
2006
Series/Report no.: 
CESifo Working Paper No. 1863
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We verify whether an income support policy for part-time workers in Belgium increases the transition from unemployment to non-subsidised, “regular” employment. Using a sample of 8630 long-term unemployed young women, whose labour market history is observed from 1998 to 2001, we implement the “timing of events” approach proposed by Abbring and Van den Berg (2003) to control for selection effects. Our results suggest that the policy has a significantly positive effect on the transition to non-subsidised employment when one does not control for unobserved heterogeneity. This effect remains positive, but becomes insignificant, when one corrects for selection on unobservable characteristics.
JEL: 
J64
J68
C41
Document Type: 
Working Paper
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