Evaluating the back-to-work scheme for young people
Published: 7 March 2013
The independence contract (/contrat d’autonomie/) was introduced in 2008 as part of the ‘Hope for the suburbs’ programme. The programme aimed to help young people – those aged between16 and 25, or up to 30 in special circumstances – from disadvantaged areas to find employment. The plan was to offer work contracts of at least six months, or an apprenticeship. For poorly qualified young people, a training programme was provided. Others were given help setting up their own businesses.
The independence contract (‘contrat d’autonomie’) was introduced in France in 2008 to help young people from disadvantaged neighbourhoods enter the labour market. The overall take-up was positive, and the help and guidance to participants appears to have been effective. However, the dropout rate has been high, particularly among the most disadvantaged young people. It also seems that many of those who succeeded in finding work are employed under precarious conditions.
Background
The independence contract (contrat d’autonomie) was introduced in 2008 as part of the ‘Hope for the suburbs’ programme. The programme aimed to help young people – those aged between16 and 25, or up to 30 in special circumstances – from disadvantaged areas to find employment. The plan was to offer work contracts of at least six months, or an apprenticeship. For poorly qualified young people, a training programme was provided. Others were given help setting up their own businesses.
The programme ran from 2008 to 2011 in 35 French departments, and in 2012 was extended to a further 11 departments. Its aim was to reach 45,000 young job seekers between 2008 and 2011, and another 15,000 during the extension period. The implementation of the measure was to be driven by specialist agencies, such as recruitment or temporary agencies, training companies or local ‘missions’, which could apply for public tenders.
An independence contract was signed between the young job seeker and their agency. The contract fixed a goal, and to reach it the young person received guidance and support from the agency for up to six months with the possibility of extended support for a further six months. During that orientation stage, the job seeker received a monthly subsidy of €300. The second stage of the contract started with the young person entering into employment/training, or with the setting up of their own business. During that stage, the agency provided advice and, if necessary, mediation for another six months.
Evaluation
Between July 2008 and July 2011, 41,000 young jobs seekers signed an independence contract, and almost 12,000 found employment. This corresponds to a ‘success rate’ of 30%. Error! Reference source not found. provides these figures by month.
Figure 1: Participants who found employment or training
Source: Dares
A survey in 2009 of participants who entered the programme recorded some characteristics of the young people taking part, and how successful they were. The survey questioned 4,900 young people who signed independence contracts, and the table is based on the results. On average, job seekers were aged 21, slightly more likely to be male, and generally low skilled.
| Signatures | Dropout or withdrawal | In employment | In training | |
|---|---|---|---|---|
| Total | 100 | 64 | 24 | 12 |
| Gender | ||||
| Male | 56 | 66 | 21 | 13 |
| Female | 44 | 62 | 28 | 10 |
| Age group | ||||
| 18 to 21 | 7 | 80 | 10 | 10 |
| 22 to 25 | 53 | 64 | 23 | 13 |
| 26+ | 2 | 54 | 35 | 11 |
| Level of qualification | ||||
| School leaver before the last year of vocational degrees or two years before passing the baccalauréat | 27 | 71 | 17 | 12 |
| Failed to obtain professional degree or left grammar school before baccalauréat | 23 | 69 | 19 | 12 |
| Professional degree (CAP-BEP) | 21 | 59 | 30 | 11 |
| Failed to obtain baccalauréat | 12 | 60 | 28 | 12 |
| Baccalauréat | 11 | 56 | 31 | 13 |
| At least two years of professional training | 6 | 52 | 36 | 12 |
Source: Dares
In addition, most of the young people had made attempts to find employment through conventional channels – 82% of the participants had previously approached the public employment agency or a Mission Locale, government-funded intervention agencies for young people. Three out of four had previous work experience, although the type of contract they had been given varied. Of those questioned, 43% had worked on a fixed-term contract, 15% on a permanent arrangement, 23% as temporary agency workers, 9% on apprenticeship schemes, and 10% had worked occasionally.
Most participants were unemployed before signing the independence contract, as shown in Error! Reference source not found..
Figure 3: Situation before signing Independence Contract
Source: Dares
More than two-thirds said in their contract that they were looking for employment, while 30% wanted to access training. The guidance after signing the contract was reported to be intensive – 83% of the participants reported that they met their agent at least once a week. The frequency of meetings, however, was found to have no effect on the eventual success of the measure.
In most cases (71%), the agency trained participants in writing CVs and cover letters, and in the preparation of interviews.
Of the surveyed participants in 2009, 42% were reported to have had access to employment or training after the first stage of the programme, although 6% of these found employment or training on their own. Figures show that 66% of those reaching the second stage stated that they had reached their initial goal.
Error! Reference source not found. showed that women were slightly more likely to succeed than men, although further analysis revealed that this only held true for women without children. Moreover, the initial level of qualification was of major importance. All things being equal, it was found that the success rate was significantly lower for early school leavers. Previous employment, or unemployment, was another important factor likely to increase, or decrease, the chances of success.
The figures showed that 63% of those who had found a job were in so-called sustainable employment; broken down by type of employment, 30% had a fixed-term contract of at least six months, 21% a permanent contract, 10% obtained a work-study contract, and 2% had started their own business. Most women found employment in the service sector (59%), whereas for men employment was distributed throughout all sectors except agriculture.
Pay, after tax, was reported to be modest, with 44% earning less than €1,000 per month, 34% between €1,000 and €1,250, and 22% more than €1,250. Low salaries may partly be explained by the high proportion who had part-time jobs, 34%, and 20% were working less than 17.5 hours per week.
Commentary
Although the independence contract helped to bring young people into employment, a few caveats are worth noting.
First, the overall success rate of 36% is relatively low and the programme appears to be less effective for those who would need it most, in particular early school leavers with previous experience of unemployment and/or no professional experience.
Second, the quality and sustainability of the employment to which the contract leads is unclear. It is reported that many of those who found work have precarious contracts. It also too soon to know whether the independence contract has really helped young people from disadvantaged neighbourhoods to enter and remain in the labour market.
Reference
Couvert, N., Crusson, L., and Rostam, W. (2012), Le contrat d’autonomie: 4 jeunes sur 10 entrés en 2009 ont accédé à un emploi ou à une formation, Dares Analyses, No. 84.
Sebastian Schulze-Marmeling, IRShare
Eurofound recommends citing this publication in the following way.
Eurofound (2013), Evaluating the back-to-work scheme for young people, article.
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