The Effects of Subsidised Employment in Socio-Economic Enterprises and Non-Profit Employment Projects on the Subsequent Labour Market Integration of the Unemployed. Results of a Microeconometric Evaluation

Socio-economic enterprises (Sozialökonomische Betriebe – SÖB) and non-profit employment projects (Gemeinnützige Beschäftigungsprojekte – GBP) offer transitional jobs as well as accompanying training and socio-pedagogical support to unemployed job-seekers with placement difficulties. The main purpose is to stabilise and qualify them for later re-integration in the regular labour market. As implied by the results of a counterfactual impact evaluation, transitional employment in SÖB or GBP on average strengthens labour force participation and enhances individuals' employment prospects significantly. Participation benefits women and older workers to a disproportionate extent.