Is income support for part-time workers a steppingstone to regular jobs? An application to young long-term unemployed women

We verify whether income support for low-paid part-time workers in Belgium increases the transition from unemployment to non-subsidised, “regular” employment. Using a sample of long-term unemployed young women, whose labour market histories are observed from 1998 to 2001, we implement the “timing of events” method to control for selection effects. Our results suggest that the policy has a significantly positive effect on the transition to regular employment.