Evaluating the Impact of French Employment Policies on Individual Labour Market Histories

Abstract

This paper deals with the evaluation of some public employment policies set up in France during the 1980's to improve the labour market prospects of unskilled young workers. The evaluation implemented in this paper is restricted to the impact of such public measures on durations and outcomes of subsequent spells of unemployment and employment. The econometric study is conducted with non-experimental longitudinal microdata recording individual labour market histories. A particular attention is paid to the differential effects of various types of measures, according to the educational level of recipients. Programmes involving a higher level of on-the-job training, such as alternating work/training programmes in private firms, are principally beneficial to the less educated young workers. In contrast, for more educated young workers, “work fare” programmes in the public sector decrease the intensity of transition from the subsequent unemployment spell to regular jobs; for that subgroup, “work fare” programmes may act as a signal of low employment performance.