IPP Policy Brief n°4 - February 2013

The subsidised temporary job policy: brake or stepping stone to a return to work ?

illustration-note4-IPPIPP Policy Brief n°4

February 2013

Author: Antoine Terracol

logo-pdf-min-2The subsidised temporary job policy: brake or stepping stone to a return to work ?

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Summary:

The “subsidised temporary job” policy allows job seekers to gain some income from paid work while keeping part of their unemployment benefit. This study assesses the impact of the policy by comparing the rate of return to work of beneficiaries of the scheme and non-beneficiaries.
The results indicate that the temporary work measure is a brake on the return to work during the first eight months. However, the negative effect decreases over time until finally the effect becomes positive. Around ten months from starting in the scheme, the return to work rate of beneficiaries is slightly higher than it would have been without the policy.

Key points:

  • The subsidised temporary work policy allows job seekers to gain some income from both paid work and unemployment benefits
  • The goal of improving the prospects of a return to stable employment may be partly counteracted by less effective job-seeking during periods of temporary work
  • Analysis of trends among job-seekers shows that the effect of the policy is slightly positive, though the advantage comes late