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Differential Effects of Active Labour Market Programmes in the Early Stages of Young People's Unemployment

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Author Info
Kari Hämäläinen
Virve Ollikainen
Abstract

This study evaluates the long-run effects of Finnish active labour market programmes in youth labour markets. The effectiveness of programmes is measured by a number of outcomes, including employment, unemployment, programme participation, education, being out of the labour force and annual earnings. A non-parametric propensity score matching approach adapted for the case of multiple programmes is applied to estimate the average programme effects. Our results point out distinct variation in the success of programmes, and indicate that job placement and labour market training are successful not only in promoting employment but also in increasing the earnings of participants. The largest of all programmes, youth practical training, is not found to have any impacts on young persons? labour market careers.

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Paper provided by Government Institute for Economic Research (VATT) in its series VATT Research Reports with number 115.

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Date of creation: 31 Dec 2004
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Handle: RePEc:fer:resrep:115

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Related research
Keywords: active labour market programmes propensity score matching heterogeneous treatment effects JEL classification: C14 J13 J68

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Find related papers by JEL classification:
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Blackwell Publishing, vol. 65(2), pages 261-94, April. [Downloadable!] (restricted)
  2. Guido W. Imbens, 1999. "The Role of the Propensity Score in Estimating Dose-Response Functions," NBER Technical Working Papers 0237, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Blackwell Publishing, vol. 64(4), pages 605-54, October. [Downloadable!] (restricted)
  4. 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. 127(1), pages 59-82. [Downloadable!] (restricted)
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  5. Rajeev H. Dehejia & Sadek Wahba, 1998. "Causal Effects in Non-Experimental Studies: Re-Evaluating the Evaluation of Training Programs," NBER Working Papers 6586, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Michael Gerfin & Michael Lechner, 2002. "A Microeconometric Evaluation of the Active Labour Market Policy in Switzerland," Economic Journal, Royal Economic Society, vol. 112(482), pages 854-893, October. [Downloadable!] (restricted)
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  7. Michael Lechner, 2002. "Program Heterogeneity And Propensity Score Matching: An Application To The Evaluation Of Active Labor Market Policies," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 205-220, May. [Downloadable!] (restricted)
  8. Dan A. Black & Jeffrey Smith, 2003. "How Robust is the Evidence on the Effects of College Quality? Evidence From Matching," University of Western Ontario, CIBC Human Capital and Productivity Project Working Papers 20033, University of Western Ontario, CIBC Human Capital and Productivity Project. [Downloadable!]
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  9. LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-20, September. [Downloadable!] (restricted)
  10. James J. Heckman, 1989. "Choosing Among Alternative Nonexperimental Methods for Estimating the Impact of Social Programs: The Case of Manpower Training," NBER Working Papers 2861, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  11. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February. [Downloadable!] (restricted)
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  12. Barbara Sianesi, 2002. "An evaluation of the Swedish system of active labour market programmes in the 1990s," IFS Working Papers W02/01, Institute for Fiscal Studies. [Downloadable!]
  13. 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. [Downloadable!] (restricted)
  14. Dex, Shirley, et al, 1995. "Cross-National Comparisons of the Labour Force Participation of Women Married to Unemployed Men," Oxford Economic Papers, Oxford University Press, vol. 47(4), pages 611-35, October. [Downloadable!] (restricted)
  15. Michael Lechner, 1999. "Identification and Estimation of Causal Effects of Multiple Treatments Under the Conditional Independence Assumption," IZA Discussion Papers 91, Institute for the Study of Labor (IZA). [Downloadable!]
  16. Lechner, Michael, 1999. "Earnings and Employment Effects of Continuous Off-the-Job Training in East Germany after Unification," Journal of Business & Economic Statistics, American Statistical Association, vol. 17(1), pages 74-90, January.
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  1. Glenda Quintini & John P. Martin & Sébastien Martin, 2007. "The Changing Nature of the School-to-Work Transition Process in OECD Countries," IZA Discussion Papers 2582, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Kari Hämäläinen & Juha Tuomala, 2007. "Vocational Labour Market Training in Promoting Youth Employment," VATT Discussion Papers 432, Government Institute for Economic Research (VATT). [Downloadable!]
  3. Aki Kangasharju, 2005. "Do Wages Subsidies Increase Employment in Subsidised Firms?," VATT Discussion Papers 378, Government Institute for Economic Research (VATT). [Downloadable!]
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