Rene Böheim, Andrea Weber,
"The effects of marginal employment on subsequent labour market outcomes"
, 7-2006, IZA Discussion Paper No. 2221
Forschungsinstitut für Zukunft der Arbeit, Bonn, Deutschland
Original Titel:
The effects of marginal employment on subsequent labour market outcomes
Sprache des Titels:
Englisch
Original Kurzfassung:
We analyse the consequences of starting a wage subsidised job, "marginal employment", for unemployed workers. Marginal employment is a type of wage subsidy paid to unemployed workers and they do not lose their unemployment benefits if the wage is below a certain threshold. We ask if the unemployed who start marginal jobs face better labour market outcomes than those who do not work. A priori it is not clear if those who work in marginal employment improve their labour market status, e.g. by signalling effort, or worsen it by reduced job search effort. We select unemployed workers and investigate the effect of marginal employment on their labour market outcomes, by means of propensity score matching. Our results suggest that selection into marginal employment is "negative", i.e. workers with characteristics we usually associate with low-productivity are more likely to select into such jobs. The unemployed who start to work in marginal employment during their unemployment spell suffer a (causal) penalty for doing so, relative to their peers who do not. The penalty, in terms of less employment, more unemployment, lower wages, lessens over time but is still present after three years.
Sprache der Kurzfassung:
Englisch
Erscheinungsmonat:
7
Erscheinungsjahr:
2006
Notiz zum Zitat:
IZA Discussion Paper No. 2221
Forschungsinstitut für Zukunft der Arbeit, Bonn, Deutschland
Forschungs-