Tackling Ethnic Minority Disadvantage: The Differential Impact of Short-term and Long-term-Oriented Strategies on Subsequent Job Matches and Sustainable Employment

Abstract

In the Netherlands, the generic work-first support seems unable to mitigate the scarring effects of prior unemployment on ethnic minorities’ careers. This study compares the impact of vulnerable ethnic minorities participating in an alternative employer-based employment programme with a control group entitled to work-first support on employment up to ten years later. We look at how both labour market interventions with different time horizon strategies may close the employment gap with the regular labour force. Results indicate that programme participants from (non-)western groups achieve higher levels of (competitive) employment than the control group, but the programme’s impact is negligible for the most established ethnic groups. The improved short-term wage match can partially explain the additional programme effect when considering the different time horizon strategies. Our results call for more employer-based programmes providing vulnerable ethnic minorities with the desired skills for better employment prospects, e.g. skill-shortage jobs.