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The Knowledge Lift: The Swedish Adult Education Program that Aimed to Eliminate Low Worker Skill Levels

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The Swedish adult education program known as the Knowledge Lift is unprecedented in its size and scope, aiming to raise the skill level of all low-skilled workers towards the medium level. This paper evaluates the effects of program participation on individual labor market outcomes, notably employment and annual income, as well as on the labor market equilibrium. For the effects at the individual level, we apply fixed effect methods allowing for treatment effect heterogeneity. The data are based on a number of matched longitudinal administrative data sets covering the full population of Sweden. For the equilibrium effects, we analyze an equilibrium search model with heterogeneous worker skills. This model is calibrated using pre-program observations. Classification-JEL Codes: J240, J410, I280

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Paper provided by Georgetown University, Department of Economics in its series Working Papers with number gueconwpa~05-05-08.

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Date of creation: 08 May 2005
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Handle: RePEc:geo:guwopa:gueconwpa~05-05-08

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Postal: Georgetown University Department of Economics Washington, DC 20057-1036
Phone: 202-687-6074
Fax: 202-687-6102
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Web page: http://econ.georgetown.edu/

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Postal: Marcia Suss Administrative Officer Georgetown University Department of Economics Washington, DC 20057-1036
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Web: http://econ.georgetown.edu/

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Keywords: returns to education; training; program evaluation; wages; participation; unemployment; schooling; Swedish labor market; selectivity bias; treatment effect.;

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  1. Richardson, Katarina & van den Berg, Gerard J., 2002. "The effect of vocational employment training on the individual transition rate from unemployment to work," Working Paper Series 2002:8, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  2. Christopher A. Pissarides & Barbara Petrongolo, 2001. "Looking into the Black Box: A Survey of the Matching Function," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 390-431, June.
  3. Annette Bergemann & Bernd Fitzenberger & Stefan Speckesser, 2009. "Evaluating the dynamic employment effects of training programs in East Germany using conditional difference-in-differences," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(5), pages 797-823.
  4. Carling, Kenneth & Holmlund, Bertil & Vejsiu, Altin, 1999. "Do benefit cuts boost job findings? Swedish evidence from the 1990s," Working Paper Series 1999:8, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  5. Jeremy Lise & Shannon Seitz & Jeffrey Smith, 2004. "Equilibrium Policy Experiments and the Evaluation of Social Programs," NBER Working Papers 10283, National Bureau of Economic Research, Inc.
  6. Thierry Magnac, 2002. "Binary variables and fixed effects: generalizing conditional logit," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 D6-4, International Conferences on Panel Data.
  7. 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.
  8. 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.
  9. James Albrecht & Susan Vroman, 2002. "A Matching Model with Endogenous Skill Requirements," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(1), pages 283-305, February.
  10. Thierry Magnac, 2004. "Panel binary variables and sufficiency : generalizing conditional logit," Working Papers 155465, Institut National de la Recherche Agronomique, France.
  11. 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.
  12. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, vol. 66(5), pages 1017-1098, September.
  13. James J. Heckman & Jeffrey A. Smith, 1999. "The Pre-Program Earnings Dip and the Determinants of Participation in a Social Program: Implications for Simple Program Evaluation Strategies," NBER Working Papers 6983, National Bureau of Economic Research, Inc.
  14. 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.
  15. Blundell, Richard William & Costa Dias, Monica & Meghir, Costas & Van Reenen, John, 2003. "Evaluating the Employment Impact of a Mandatory Job Search Programme," CEPR Discussion Papers 3786, C.E.P.R. Discussion Papers.
  16. Richard Blundell & Monica Costa Dias & Costas Meghir & John Van Reenen, 2001. "Evaluating the employment impact of a mandatory job search assistance program," IFS Working Papers W01/20, Institute for Fiscal Studies.
  17. 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.
  18. Stenberg, Anders, 2003. "An Evaluation of the Adult Education Initiative Relative Labor Market Training," UmeÃ¥ Economic Studies 609, Umeå University, Department of Economics.
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