Subsidized Jobs for Unemployed Workers in Slovakia

Abstract

This paper uses an administrative dataset from the Slovak Republic on durations of individual unemployment spells. The focus of the analysis is on the effect of the duration of temporary subsidized jobs on the job finding rate of unemployed workers. It appears that the duration of the temporary jobs is an important determinant of the speed by which unemployed workers find regular jobs. In this sense shorter temporary jobs are more effective than long temporary jobs. The main reason for this is probably that temporary jobs with a long duration induce workers in the first period on the temporary job to search less intensive for a regular job than temporary jobs with a short duration do.