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Compulsion in Active Labour Market Programs

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Author Info

  • Ours, J.C. van

    (Tilburg University, Center for Economic Research)

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    Abstract

    This paper is on compulsion in active labour market programs (ALMP). When an unemployed worker has to participate in a programme order to remain eligible for benefits there are two separate effects. First, there is the treatment effect, i.e. the program makes the worker more attractive for a potential employer or makes search more efficient thus helping the unemployed worker to find a job more quickly. Second, there is the compulsion effect, i.e. because the worker has to attend the program his value of being unemployed drops and he is stimulated to find a job more quickly. So, both effects induce the worker to find a job more quickly. The difference between the treatment effect and the compulsion effect concerns the quality of the postunemployment job. The treatment effect improves the quality; the compulsion effect lowers the quality of postunemployment jobs.

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    Bibliographic Info

    Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2007-74.

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    Date of creation: 2007
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    Handle: RePEc:dgr:kubcen:200774

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    Web page: http://center.uvt.nl

    Related research

    Keywords: compulsion; active labour market policies;

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    Cited by:
    1. Sylvie Blasco & Barbara Pertold-Gebicka, 2012. "Employment Policies, Hiring Practices and Firm Performance," Working Papers 2012-27, Centre de Recherche en Economie et Statistique.
    2. Zuzana Brixiova & Balazs Egert, 2010. "Modeling Institutions, Start-Ups And Productivity During Transition," William Davidson Institute Working Papers Series wp975, William Davidson Institute at the University of Michigan.

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