Effects of Extra Employment Programs

Abstract

In this chapter the two-stage time series measurement approach is applied to measure the total effect of extra employment programs on unemployment in the public infrastructure sector in the province of Groningen (the Netherlands) during the period 1972–1976. The extra employment programs were initiated in several provinces in 1972. Their main aim was to combat short-term unemployment. These programs were made up by such projects such as the construction of socio-cultural and recreational facilities and investments in public infrastructure. The latter kind of projects consisted of the construction of roads, bridges, etc. In this chapter attention is only paid to the effect on unemployment in the public infrastructure sector because this is the only sector for which suitable data on the impact variable could be obtained.