Do subsidized work contracts enhance capabilities of the long-term unemployed ? Evidence based on French Data

Abstract

In the 1990’s, France introduced different subsidised contracts to create jobs targeted at long-term unemployment. These programs were supposed to help the beneficiaries to enhance their employability. It is then interesting to use the “capabilities” approach to assess their impact. From the panel of the Research and Statistical Department of the French Ministry of labour and social affairs (Dares) concerning employment policy beneficiaries, an initial analysis explored the beneficiaries’ refined functionings and a second how they subjectively perceive their standard of living. Comparing beneficiaries’ perceptions to those of a control group provided the necessary data to evaluate the real impact of these employment schemes on beneficiaries. Globally, subsidised employment contracts provide beneficiaries’ with an increased number of opportunities or choices that can be achieved and thus can be said to improve their quality of life. Furthermore, the private sector employment contract to the long-term unemployed (the so-called “CIE”) is generally viewed more positively than the fixed-term contract in the public sector (the so-called “CES”) although the latter is viewed as more successful in allowing beneficiaries to “feel useful” and “regain self-esteem”.