Article Green Open Access 2020

“You reap what you sow”: Do active labour market policies always increase job security? Evidence from the Youth Guarantee

FC
Focacci, Chiara Natalie
European Journal of Law and Economics
Journal · Vol. 49 · Issue 3 · pp. 373-429
Abstract

The paper uses non-experimental longitudinal data to study the effects of participation in the Youth Guarantee programme aimed at fighting youth inactivity in the European Union territory. Particularly, this analysis questions the value of active labour market policy as a valid instrument to help individuals otherwise isolated from the labour market and, thus, at risk of deterioration of human capital overcome their condition of occupational inactivity. A difference-in-differences model is exploited in this regard to investigate whether there exists an advantage for participants of the Youth Guarantee in terms of employment and job stability. Results show that participants are 7.4 and 4.4 percentage points more likely to, respectively, become employed and be offered an open-ended contract. An assessment of profiling is also provided. © 2020, Springer Science+Business Media, LLC, part of Springer Nature.

Keywords

Author Keywords

Training youth unemployment NEET European Union difference-in-differences Active labour market policy Youth guarantee Flexicurity Profiling

Index Keywords

Author Affiliations
Department of Economics, Alma Mater Studiorum Università di Bologna, Bologna, BO, Italy, Rotterdam Institute of Law and Economics, Rotterdam, Zuid-Holland, Netherlands
Funding & Acknowledgements
No funding information
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