ABSTRACT In the Netherlands, public work-first support tends to cause unemployed young people to exit into primarily non-standard jobs. A worldwide-renowned Dutch company, Royal Philips, has offered since the mid-1980s a two-year lasting work experience and vocational training programme to long-term unemployed youth as an alternative to public work-first support. This quasi-experimental study uses data from the company programme's participants and national longitudinal register data for the matched control group receiving public work-first support. The present study observes the employment impact of this private company's employment programme compared to the public programme for inadequately skilled youth (aged 16–35) by education level. Participants’ employment levels are compared with a carefully matched public work first-subjected control group up to a maximum of ten years later. Fixed-effects panel regression models show that, due to its upskilling and work experience features, the employment programme positively affects sustained wage-fitted employment over ten years compared with the control group subjected to public work-first support. The programme's employment effect associated with upskilling is achieved notably with low-educated participants who received vocational training. In contrast, participating high-educated young people seem to profit from human capital and signalling effects.
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