Bridging gaps, building futures: evaluating a multinational's employment programme vs. work-first for youth with diverse education levels

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.