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

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.