The effect of temporary in-work support on employment retention: evidence from a field experiment

Publication date: 17 Sep 2013 | Publication type: NIESR Discussion Paper | Theme: Employment & Social policy | NIESR Author(s): Dorsett, R | NIESR Discussion Paper Number: 411

A recent experimental programme for unemployed welfare recipients in the UK found that temporary earnings supplements combined with post-employment services led to increased employment rates. This paper examines whether these overall impacts are due to employment entry or employment retention effects. Findings from a multivariate mixed proportional hazards model suggest that entry effects dominated initially but that longer-term impacts were primarily due to increased retention. This retention effect persisted beyond the operational period of the programme and was evident even after controlling for the effect of employment experience.

Keyword tags: 
employment retention
earnings supplements
treatment effects
duration model
unobserved heterogeneity

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