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The Aggregate Labour Market Effects of the Swedish Knowledge Lift Program

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  • Albrecht, James
  • van den Berg, Gerard J
  • Vroman, Susan

Abstract

The Swedish adult education program known as the Knowledge Lift (1997--2002) was unprecedented in its size and scope, aiming to raise the skill level of large numbers of low-skill workers. This paper evaluates the potential effects of this program on aggregate labour market outcomes. This is done by calibrating an equilibrium search model with heterogeneous worker skills using pre-program data and then forecasting the program impacts. We compare the forecasts to observed aggregate labour market outcomes after termination of the program.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5927.

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Date of creation: Nov 2006
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Handle: RePEc:cpr:ceprdp:5927

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Keywords: calibration; job search; program evaluation; returns to education; Swedish labour market; unemployment; wages;

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References

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  1. Berg, Gerard J. van den & Gautier, Pieter A. & Ours, Jan C., 1998. "Worker turnover at the firm level and crowding out of lower educated workers," Serie Research Memoranda 0049, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  2. Edin, P.-A. & Fredriksson, P., 2000. "LINDA - Longitudinal INdividual DAta for Sweden," Papers 2000-19, Uppsala - Working Paper Series.
  3. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
  4. Richardson, Katarina & van den Berg, Gerard J., 2006. "Swedish Labor Market Training and the Duration of Unemployment," IZA Discussion Papers 2314, Institute for the Study of Labor (IZA).
  5. James J. Heckman & Lance Lochner & Christopher Taber, 1998. "General Equilibrium Treatment Effects: A Study of Tuition Policy," NBER Working Papers 6426, National Bureau of Economic Research, Inc.
  6. Albrecht, James & van den Berg, Gerard J. & Vroman, Susan, 2005. "The Knowledge Lift: The Swedish Adult Education Program That Aimed to Eliminate Low Worker Skill Levels," IZA Discussion Papers 1503, Institute for the Study of Labor (IZA).
  7. Barbara Petrongolo & Christopher Pissarides, 2000. "Looking into the black box: a survey of the matching function," LSE Research Online Documents on Economics 2122, London School of Economics and Political Science, LSE Library.
  8. Martin, John P. & Grubb, David, 2001. "What works and for whom: a review of OECD countries' experiences with active labour market policies," Working Paper Series 2001:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  9. Jeremy Lise & Shannon Seitz & Jeffrey Smith, 2003. "Equilibrium Policy Experiments and the Evaluation of Social Programs," Working Papers 1012, Queen's University, Department of Economics.
  10. Robert G. Fay, 1996. "Enhancing the Effectiveness of Active Labour Market Policies: Evidence from Programme Evaluations in OECD Countries," OECD Labour Market and Social Policy Occasional Papers 18, OECD Publishing.
  11. Robert Shimer, 2005. "The Cyclical Behavior of Equilibrium Unemployment and Vacancies," American Economic Review, American Economic Association, vol. 95(1), pages 25-49, March.
  12. James Albrecht & Susan Vroman, 2000. "A Matching Model with Endogenous Skill Requirements," Econometric Society World Congress 2000 Contributed Papers 0774, Econometric Society.
  13. Louis S. Jacobson & Robert LaLonde & Daniel G. Sullivan, 2003. "Should we teach old dogs new tricks? the impact of community college retraining on older displaced workers," Working Paper Series WP-03-25, Federal Reserve Bank of Chicago.
  14. Stenberg, Anders, 2003. "An Evaluation of the Adult Education Initiative Relative Labor Market Training," UmeÃ¥ Economic Studies 609, Umeå University, Department of Economics.
  15. Davidson, Carl & Matusz, Steven J. & Shevchenko, Andrei, 2008. "Globalization and firm level adjustment with imperfect labor markets," Journal of International Economics, Elsevier, vol. 75(2), pages 295-309, July.
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Citations

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Cited by:
  1. Stenberg, Anders & Westerlund, Olle, 2014. "The long-term earnings consequences of general vs. specific training of the unemployed," Working Paper Series 2014:3, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  2. Ronald P. Wolthoff, 2010. "Applications and Interviews: A Structural Analysis of Two-Sided Simultaneous Search," Working Papers tecipa-418, University of Toronto, Department of Economics.
  3. Alexius, Annika & Holmlund, Bertil, 2007. "Monetary Policy and Swedish Unemployment Fluctuations," IZA Discussion Papers 2933, Institute for the Study of Labor (IZA).
  4. Speckesser, Stefan & Fitzenberger, Bernd & Bergemann, Annette, 2004. "Evaluating the Dynamic Employment Effects of Training Programs in East Germany Using Conditional Difference-in-Differences," ZEW Discussion Papers 04-41, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. Lamo, Ana & Messina, Julián & Wasmer, Etienne, 2011. "Are specific skills an obstacle to labor market adjustment?," Labour Economics, Elsevier, vol. 18(2), pages 240-256, April.
  6. Volker Meier, 2010. "Programmauswahl in der aktiven Arbeitsmarktpolitik durch Selbstbeteiligung?," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 63(17), pages 27-29, 09.
  7. Natalya Y. Shelkova, 2009. "Collusion at the Non-Binding Minimum Wage: An Automatic Stabilizer?," Working papers 2009-41, University of Connecticut, Department of Economics.
  8. Bergemann, Annette & van den Berg, Gerard J., 2014. "From giving birth to paid labor: the effects of adult education for prime-aged mothers," Working Paper Series 2014:5, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  9. Singer, Christine & Toomet, Ott-Siim, 2013. "On government-subsidized training programs for older workers," IAB Discussion Paper 201321, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  10. Richardson, Katarina & van den Berg, Gerard J, 2008. "Duration dependence versus unobserved heterogeneity in treatment effects: Swedish labor market training and the transition rate to employment," Working Paper Series 2008:7, IFAU - Institute for Evaluation of Labour Market and Education Policy.

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