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Identifying treatment effects of active labour market programmes for Norwegian adults

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  • Zhang, Tao

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    (Ragnar Frisch Centre for Economic Research)

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    Abstract

    We investigate treatment effects of active labour market programmes for Norwegian adults for the 1990 to 2000 period. Three types of active labour market programmes are evaluated within a competing risks hazard rate model. Non-parametric specifications on both duration dependence and unobserved heterogeneities are used. By utilising rich administrative data, we find that active labour market programmes do have intended effects on enhancing the transition probability to employment after the completion of programmes participation, but during the participation, the transition probability is low relative to that for non-participants. There is some evidence of heterogeneity of treatment effects with respect to observed individual characteristics, and effects for training programmes and wage subsidy programmes are pro-cyclical and more favourable at boom time. The positive treatment effects of labour market programmes are long lasting, at the same time diminish gradually over time when individuals remain in unemployment after completion of programmes. The net impact of active labour market programmes in terms of reduced total amount of unemployment exposure is estimated to be about 6.42%.

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    File URL: http://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2003/Memo-26-2003.pdf
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    Bibliographic Info

    Paper provided by Oslo University, Department of Economics in its series Memorandum with number 26/2003.

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    Length: 45 pages
    Date of creation: 01 Dec 2003
    Date of revision:
    Handle: RePEc:hhs:osloec:2003_026

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    Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
    Phone: 22 85 51 27
    Fax: 22 85 50 35
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    Web page: http://www.oekonomi.uio.no/indexe.html
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    Related research

    Keywords: labour market programmes; treatment effects; competing risk; non-parametric estimation.;

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    References

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    1. Jaap H. Abbring & Gerard J. van den Berg, 2003. "The identifiability of the mixed proportional hazards competing risks model," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 65(3), pages 701-710.
    2. Arild Aakvik & James J. Heckman & Edward J. Vytlacil, 2000. "Treatment Effects for Discrete Outcomes when Responses to Treatment Vary Among Observationally Identical Persons: An Application to Norwegian ..," NBER Technical Working Papers 0262, National Bureau of Economic Research, Inc.
    3. Jaap H. Abbring & Gerard J. van den Berg, 2003. "The Nonparametric Identification of Treatment Effects in Duration Models," Econometrica, Econometric Society, vol. 71(5), pages 1491-1517, 09.
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    Cited by:
    1. Kluve, Jochen, 2010. "The effectiveness of European active labor market programs," Labour Economics, Elsevier, vol. 17(6), pages 904-918, December.

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