Scheme participation and employment outcome of young unemployed people

Abstract

The author analyses active labour market policy in nine European countries. The questions address the recruitment of long-term unemployed youth and attempt to identify those who are recruited to activation schemes. Furthermore, he has estimated the probability of employment after participation in labour market training schemes and possible effects on income. The author found in his study that in all 10 countries, a total of 40% of unemployed young people had ever participated in a training scheme. The results showed that participation in training schemes now seems to be an institutionalised pattern in the school-to-work transition. However, scheme participation varied significantly across countries. In all countries, females had a higher participation rate than males. In all countries both the number of unemployment spells and accumulated duration of unemployment increased the probability of scheme participation. The findings indicate different mechanisms between getting a job and job outcome, measured as gross hourly income of employed respondents. lf the threshold of re-employment is successfully conquered, income depends much more on 'classical human capital'-based indicators, such as qualifications and type of qualifications. The opposite appeared to be the case when considering duration of unemployment, which reduced income. It can therefore be concluded that scheme-based labour market policy had some effect, and supported integration only had an impact to a certain degree. (IAB2) ((en))

Cite article

Dietrich, H. (2003): Scheme participation and employment outcome of young unemployed people. Empirical findings from nine European countries. In: T. Hammer (Hrsg.) (2003): Youth unemployment and social exclusion : a comparative study, p. 83-108.