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The Impact Of Active Labour Market Policies And Benefit Entitlement Rules On The Duration Of Unemployment

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  • Lalive, Rafael
  • van Ours, Jan C
  • Zweimüller, Josef

Abstract

We evaluate the effect of active labour market programs on the duration of unemployment in a reward or punish system. In Switzerland, unemployment benefits are conditional upon program attendance after 7 months of unemployment duration. In the evaluation we allow for selectivity affecting the inflow into programs. Our results indicate that (i) After ALMP-participation the transition rate to jobs increases for Swiss women but not for Swiss men. However, the job hazard rate is strongly reduced during participation. Taken together, this leads to the conclusion that programs prolong unemployment duration for men, but tend to shorten duration for women. (ii) Once the unemployment spell approaches the expiration of unconditional benefit entitlement the job-hazard rate increases strongly, both for women and for men. (iii) We do not find important selectivity effects, neither for males, nor females.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2451.

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Date of creation: May 2000
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Handle: RePEc:cpr:ceprdp:2451

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Related research

Keywords: active labour market policy; Benefit Entitlement; Bivariate Duration Model; Treatment Effect;

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Cited by:
  1. Gerfin, Michael & Lechner, Michael, 2001. "A Microeconometric Evaluation of Active Labour Market Policy in Switzerland," CEPR Discussion Papers 2993, C.E.P.R. Discussion Papers.
  2. Gerfin, Michael & Lechner, Michael, 2000. "Microeconometric Evaluation of the Active Labour Market Policy in Switzerland," IZA Discussion Papers 154, Institute for the Study of Labor (IZA).
  3. Michael Lechner, 2002. "Some practical issues in the evaluation of heterogeneous labour market programmes by matching methods," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 165(1), pages 59-82.
  4. Lechner, Michael & Gerfin, Michael, 2000. "Wirkung der aktiven Arbeitsmarktpolitik der Schweiz auf die individuellen Beschäftigungschancen von Arbeitslosen (Effect of active labour market policy in Switzerland on the individual employment pro," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 33(3), pages 396-404.
  5. repec:iab:iabmit:v:33:i:3:p:396-404 is not listed on IDEAS
  6. Caliendo, Marco & Steiner, Viktor, 2005. "Aktive Arbeitsmarktpolitik in Deutschland : Bestandsaufnahme und Bewertung der mikroökonomischen Evaluationsergebnisse (Active labour market policy in Germany * review ans assessment of the microecon," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(2/3), pages 396-418.
  7. Ours, J.C. van, 2004. "The locking-in effect of subsidized jobs," Open Access publications from Tilburg University urn:nbn:nl:ui:12-140882, Tilburg University.
  8. Bocean, Claudiu George, 2007. "The Impact of Active Labour Market Policies in Romania," MPRA Paper 10397, University Library of Munich, Germany.
  9. van Ours, Jan C., 2002. "The Locking-in Effect of Subsidized Jobs," IZA Discussion Papers 527, Institute for the Study of Labor (IZA).
  10. Michael Lechner, 2002. "Mikroökonometrische Evaluation arbeitsmarktpolitischer Massnahmen," University of St. Gallen Department of Economics working paper series 2002 2002-20, Department of Economics, University of St. Gallen.
  11. Ours, J.C. van, 2002. "The Locking-In Effect of Subsidized Jobs," Discussion Paper 2002-60, Tilburg University, Center for Economic Research.

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