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The relative efficiency of active labour market policy: evidence from a social experiment and non-parametric methods

Author

Listed:
  • Vikström, Johan

    (IFAU - Institute for Labour Market Policy Evaluation)

  • Rosholm, Michael

    (Department of Economics and Business, Aarhus University)

  • Svarer, Michael

    (Department of Economics and Business, Aarhus University)

Abstract

We reanalyze the effects of a Danish active labour market program social experiment, that included a range of sub-treatments, including monitoring, job search assistance and training. Previous studies have shown that the overall effect of the experiment is positive. We apply newly developed non-parametric methods to determine which of the individual policies that explains the positive effect. The use of non-parametric methods to separate sub-treatment effects is important from a methodological point of view, since the alternative, namely parametric/distributional assumptions, is in conflict with the concept of experimental evidence. Our results are highly relevant in a policy perspective, as optimal labour market policy design requires knowledge on the effectiveness of specific policy measures.

Suggested Citation

  • Vikström, Johan & Rosholm, Michael & Svarer, Michael, 2011. "The relative efficiency of active labour market policy: evidence from a social experiment and non-parametric methods," Working Paper Series 2011:7, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    • Handle: RePEc:hhs:ifauwp:2011_007
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    References listed on IDEAS

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    4. Hägglund, Pathric, 2006. "Are there pre-programme effects of Swedish active labour market policies? Evidence from three randomised experiments," Working Paper Series 2006:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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    8. Vikström, Johan & Ridder, Geert & Weidner, Martin, 2018. "Bounds on treatment effects on transitions," Journal of Econometrics, Elsevier, vol. 205(2), pages 448-469.
    9. Dan A. Black & Jose Galdo & Jeffrey A. Smith, 2007. "Evaluating the Worker Profiling and Reemployment Services System Using a Regression Discontinuity Approach," American Economic Review, American Economic Association, vol. 97(2), pages 104-107, May.
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    Cited by:

    1. Torben Andersen & Michael Svarer, 2012. "Active labour market policies in a recession," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-19, December.
    2. Pieter Gautier & Paul Muller & Bas van der Klaauw & Michael Rosholm & Michael Svarer, 2018. "Estimating Equilibrium Effects of Job Search Assistance," Journal of Labor Economics, University of Chicago Press, vol. 36(4), pages 1073-1125.
    3. Saniter, Nils & Siedler, Thomas, 2014. "The Effects of Occupational Knowledge: Job Information Centers, Educational Choices, and Labor Market Outcomes," IZA Discussion Papers 8100, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Active labour market policy; treatment effect; non-parametric bounds;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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