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Does Active Labour Market Policy Work? Lessons from the Swedish Experiences

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  • Lars Calmfors
  • Anders Forslund
  • Maria Hemström

Abstract

The Swedish experiences of the 1990s provide a unique example of how large-scale active labour market programmes (ALMPs) have been used as a means to fight high unemployment. This paper surveys the empirical studies of the effects of ALMPs in Sweden. On the whole, ALMPs have probably reduced open unemployment, but also reduced regular employment. The overall policy conclusion is that ALMPs of the scale used in Sweden in the 1990s are not an efficient means of employment policy. To be effective, ALMPs should be used on a smaller scale.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 675.

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Date of creation: 2002
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Handle: RePEc:ces:ceswps:_675

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  1. Olivier Blanchard & Justin Wolfers, 1999. "The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence," NBER Working Papers 7282, National Bureau of Economic Research, Inc.
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  4. Carling, Kenneth & Edin, Per-Anders & Harkman, Anders & Holmlund, Bertil, 1996. "Unemployment duration, unemployment benefits, and labor market programs in Sweden," Journal of Public Economics, Elsevier, Elsevier, vol. 59(3), pages 313-334, March.
  5. Holmlund, B. & Linden, J., 1991. "Job Matching, Temporary Public Employment, and Equilibrium Unemployment," Papers, Uppsala - Working Paper Series 1991l, Uppsala - Working Paper Series.
  6. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
  7. Calmfors, Lars & Lang, Harald, 1995. "Macroeconomic Effects of Active Labour Market Programmes in a Union Wage-Setting Model," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 105(430), pages 601-19, May.
  8. Agell, Jonas & Lundborg, Per, 1999. "Survey evidence on wage rigidity and unemployment: Sweden in the 1990s," Working Paper Series, IFAU - Institute for Evaluation of Labour Market and Education Policy 1999:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  9. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, Econometric Society, vol. 47(1), pages 153-61, January.
  10. Calmfors, Lars & Forslund, Anders, 1991. "Real-Wage Determination and Labour Market Policies: The Swedish Experience," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 101(408), pages 1130-48, September.
  11. Fredriksson, P., 1995. "The Dynamics of Regional Labour Markets and Active Labour Market Policy: Swedish Evidence," Papers, Uppsala - Working Paper Series 1995-20, Uppsala - Working Paper Series.
  12. Sianesi, Barbara, 2002. "Differential effects of Swedish active labour market programmes for unemployed adults during the 1990s," Working Paper Series, IFAU - Institute for Evaluation of Labour Market and Education Policy 2002:5, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  13. Carling, Kenneth & Richardson, Katarina, 2001. "The relative efficiency of labor market programs: Swedish experience from the 1990's," Working Paper Series, IFAU - Institute for Evaluation of Labour Market and Education Policy 2001:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  14. Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780198284345, October.
  15. Olle Westerlund, 1998. "Internal Migration in Sweden: The Effects of Mobility Grants and Regional Labour Market Conditions," LABOUR, CEIS, CEIS, vol. 12(2), pages 363-388, 07.
  16. Calmfors, Lars & Skedinger, Per, 1995. "Does Active Labour-Market Policy Increase Employment? Theoretical Considerations and Some Empirical Evidence from Sweden," Oxford Review of Economic Policy, Oxford University Press, Oxford University Press, vol. 11(1), pages 91-109, Spring.
  17. Fukushima, Yoshihiko, 1998. "Active Labour Market Programmes and Unemployment in a Dual Labour Market," Research Papers in Economics, Stockholm University, Department of Economics 1998:2, Stockholm University, Department of Economics.
  18. Nickell, S. & Layard, R., 1997. "Labour Market Institutions and Economic Performance," Papers, Centre for Economic Performance & Institute of Economics 23, Centre for Economic Performance & Institute of Economics.
  19. Calmfors, Lars, 1993. "Lessons from the macroeconomic experience of Sweden," European Journal of Political Economy, Elsevier, Elsevier, vol. 9(1), pages 25-72, March.
  20. Agell, Jonas & Lundborg, Per, 1995. " Theories of Pay and Unemployment: Survey Evidence from Swedish Manufacturing Firms," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 97(2), pages 295-307, June.
  21. Calmfors, Lars, 1995. "Labour market policy and unemployment," European Economic Review, Elsevier, Elsevier, vol. 39(3-4), pages 583-592, April.
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