The Effects of a Job Creation Scheme: evidence from Regional Variation in Programme Capacities
In direct job creation schemes, unemployed individuals at risk of permanent labour market exclusion are offered temporary subsidised employment in public or non-profit sector firms in combination with skills training and socio-pedagogical support. The main aim is to stabilise and qualify them for later reintegration into the regular labour market. Exploiting exogenous regional variation in population-groupspecific programme capacities, I find evidence that such a job creation scheme is, on average, effective in providing a bridge to a regular job.