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Costs and benefits of Danish active labour market programmes

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Author Info
Jespersen, Svend T.
Munch, Jakob R.
Skipper, Lars

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Abstract

Since 1994, unemployed workers in the Danish labour market have participated in active labour market programmes on a large scale. This paper contributes with an assessment of costs and benefits of these programmes. Long-term treatment effects are estimated on a very detailed administrative dataset by propensity score matching. For the years 1995 - 2005 it is found that private job training programmes have substantial positive employment and earnings effects, but also public job training ends up with positive earnings effects. Classroom training does not significantly improve employment or earnings prospects in the long run. When the cost side is taken into account, private and public job training still come out with surplusses, while classroom training leads to a deficit.

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File URL: http://www.sciencedirect.com/science/article/B6VFD-4P7R85J-1/2/d0ab4bf553192679faf658036ee46f69
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Publisher Info
Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 15 (2008)
Issue (Month): 5 (October)
Pages: 859-884
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Handle: RePEc:eee:labeco:v:15:y:2008:i:5:p:859-884

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Web page: http://www.elsevier.com/locate/labeco

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Related research
Keywords: Cost-benefit analysis Active labour market programmes Propensity score matching;

Cited by:
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  1. Lechner, Michael & Wunsch, Conny, 2006. "Are Training Programs More Effective When Unemployment Is High?," CEPR Discussion Papers 5920, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  2. Kari Hämäläinen & Virve Ollikainen, 2004. "Differential Effects of Active Labour Market Programmes in the Early Stages of Young People's Unemployment," Research Reports 115, Government Institute for Economic Research Finland (VATT). [Downloadable!]
  3. Hilmar Schneider & Karl Brenke & Birgit Jesske & Lutz Kaiser & Ulf Rinne & Marc Schneider & Jacob Steinwede & Arne Uhlendorff, 2007. "Evaluation der Maßnahmen zur Umsetzung der Vorschläge der Hartz-Kommission - Bericht 2006," IZA Research Reports 10, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Michael Lechner & Ruth Miquel & Conny Wunsch, 2005. "The Curse and Blessing of Training the Unemployed in a Changing Economy: The Case of East Germany after Unification," University of St. Gallen Department of Economics working paper series 2005 2005-15, Department of Economics, University of St. Gallen. [Downloadable!]
    Other versions:
  5. Budria, Santiago & Pereira, Pedro T., 2008. "The Contribution of Vocational Training to Employment, Job-Related Skills and Productivity: Evidence from Madeira Island," IZA Discussion Papers 3462, Institute for the Study of Labor (IZA). [Downloadable!]
  6. David Card & Jochen Kluve & Andrea Weber, 2009. "Active Labor Market Policy Evaluations: A Meta-analysis," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  7. Cavaco, Sandra & Fougère, Denis & Pouget, Julien, 2009. "Estimating the Effect of a Retraining Program on the Re-Employment Rate of Displaced Workers," IZA Discussion Papers 4227, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  8. Martin Schindler, 2009. "The Italian Labor Market: Recent Trends, Institutions, and Reform Options," IMF Working Papers 09/47, International Monetary Fund. [Downloadable!]
  9. Torben M. Andersen & Michael Svarer, 2007. "Flexicurity – labour market performance in Denmark," Economics Working Papers 2007-09, School of Economics and Management, University of Aarhus. [Downloadable!]
    Other versions:
  10. Holger Bonin & Ulf Rinne, 2006. "Evaluation of the Active Labor Market Program "Beautiful Serbia"," IZA Research Reports 8, Institute for the Study of Labor (IZA). [Downloadable!]
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