The reduced-hours scheme enables jobseekers to take up paid employment whilst retaining part of their back-to-work allowance. This study conducts an évaluation of its impact by comparing the return-to-work rates of scheme participants and non-participants.
The results indicate that the reduced-activity scheme slows down the return to work during the first eight months after joining the scheme. However, this negative effect diminishes over time until it is reversed. Around ten months after starting reduced working hours, beneficiaries ultimately achieve an employment rate slightly higher than it would have been had the scheme not been in place.
Reduced working hours: an obstacle or a stepping stone to returning to work?
Cette étude effectue l'évaluation de l'impact du dispositif d'activité réduite.
Reference IPP Policy Brief No. 4
Presentation
Key Results
- The reduced working hours scheme allows jobseekers to combine, to a limited extent, income from paid employment with their back-to-work allowance.
- The stated aim of improving prospects for a return to stable employment may be partly undermined by a reduction in the effectiveness of job-seeking during periods of reduced working hours.
- An analysis of jobseekers’ pathways shows that the net effect of the scheme is slightly positive, albeit delayed.
Method and Data
The study is based on a sample of 10,020 individuals drawn from administrative data from Pôle Emploi and Unedic, which enables a detailed tracking of periods of unemployment and periods of reduced working hours amongst jobseekers. The individuals included in the analysis registered with the employment agency between July and December 2001 and were followed up until December 2004.
Antoine Terracol