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Author: | Cockx, B. Ridder, G. |
Title: | Social Employment of Welfare Recipients in Belgium: An Evaluation |
Journal: | Economic Journal
2001 : APR, VOL. 111:47, p. 322-352 |
Index terms: | EMPLOYMENT WELFARE BELGIUM |
Language: | eng |
Abstract: | In Belgium, welfare agencies receive a subsidy to employ welfare recipients for a period sufficiently long to entitle them to unemployment benefits. The authors investigate the effect of this programme on the exit rate from welfare. The authors propose a grouping/IV estimator of the programme effect that eliminates selection bias. The estimator is consistent, even if the selection into the programme depends on the average unobserved characteristics of welfare recipients in a region and in a welfare duration interval. Without correction for selectivity the authors find that the programme reduces welfare dependence, but after correction this conclusion is reversed. |
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