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Screening through Activation? Differential Effects of a Youth Activation Programme

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  • Hall, Caroline
  • Kotakorpi, Kaisa
  • Liljeberg, Linus
  • Pirttilä, Jukka

Abstract

We study the dual role of active labour market policies: First, ALMP may perform a screening role by increasing the incentives for job search especially among individuals with good labour market prospects, already prior to programme participation. Second, actual programme participation may help individuals with poor labour market prospects. We examine whether this type of a pattern can be found in individual responses to a major nationwide youth activation programme in Sweden. We analyse individual responses to the programme using an RD design. We find that individuals with a high predicted probability of finding work respond to the threat of activation, whereas there is no effect for individuals with weak labour market prospects.

Suggested Citation

  • Hall, Caroline & Kotakorpi, Kaisa & Liljeberg, Linus & Pirttilä, Jukka, 2017. "Screening through Activation? Differential Effects of a Youth Activation Programme," Working Papers 101, VATT Institute for Economic Research.
    • Handle: RePEc:fer:wpaper:101
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    Cited by:

    1. Ollonqvist, Joonas & Kotakorpi, Kaisa & Laaksonen, Mikko & Martikainen, Pekka & Pirttilä, Jukka & Tarkiainen, Lasse, 2021. "Incentives, Health, and Retirement: Evidence from a Finnish Pension Reform," Working Papers 145, VATT Institute for Economic Research.
    2. repec:hal:spmain:info:hdl:2441/602aa43c1m81vpubigl4eotn45 is not listed on IDEAS
    3. Jonas Maibom, 2023. "The Welfare Effects Of Mandatory Reemployment Programs: Combining A Structural Model And Experimental Data," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 64(2), pages 607-640, May.
    4. Claus Thustrup Kreiner & Michael Svarer, 2022. "Danish Flexicurity: Rights and Duties," Journal of Economic Perspectives, American Economic Association, vol. 36(4), pages 81-102, Fall.
    5. Caroline Hall & Inés Hardoy & Kristine Simson, 2024. "Policies for young adults with reduced work capacity. Labour market impact in Sweden and Norway," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(1), pages 1-33, March.
    6. Pierre Cahuc, 2018. "France: Social protection for the self-employed," SciencePo Working papers Main hal-03391918, HAL.
    7. Pierre Cahuc, 2018. "France: Social protection for the self-employed," SciencePo Working papers hal-03391918, HAL.
    8. Pierre Cahuc, 2018. "France: Social protection for the self-employed," Post-Print hal-03391918, HAL.
    9. Pierre Cahuc, 2018. "France: Social protection for the self-employed," Sciences Po publications info:hdl:2441/602aa43c1m8, Sciences Po.

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    More about this item

    Keywords

    impact assessment of policy measures; unemployment; youth unemployment; Social security; taxation and inequality; J64; J68;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • I10 - Health, Education, and Welfare - - Health - - - General

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