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

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Author Info

  • 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.

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Bibliographic Info

Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2011:7.

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Length: 29 pages
Date of creation: 27 Jun 2011
Date of revision:
Publication status: Published as Vikström, Johan, Michael Rosholm and Michael Svarer, 'The effectiveness of active labor market policies: Evidence from a social experiment using non-parametric bounds' in Labour Economics, 2013, pages 58-67.
Handle: RePEc:hhs:ifauwp:2011_007

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Postal: IFAU, P O Box 513, SE-751 20 Uppsala, Sweden
Phone: (+46) 18 - 471 70 70
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Related research

Keywords: Active labour market policy; treatment effect; non-parametric bounds;

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Cited by:
  1. Pieter Gautier & Paul Muller & Bas van der Klaauw, & Michael Rosholm & Michael Svarer, 2012. "Estimating Equilibrium Effects of Job Search Assistance," Economics Working Papers 2012-27, School of Economics and Management, University of Aarhus.
  2. Pieter Gautier & Paul Muller & Bas van der Klaauw & Michael Rosholm & Michael Svarer, 2012. "Estimating Equilibrium Effects of Job Search Assistance," Tinbergen Institute Discussion Papers 12-071/3, Tinbergen Institute.

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