unobserved heterogeneity

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.