Swedish active labour market programmes in the 1990s: overall effectiveness and differential performance
AbstractThe Ñ“wedish model' of active labour market programmes is investigated in relation to some crucial institutional features with two aims: examining how successful it has been in the context of the high unemployment atypically experienced by Sweden in the 1990s and trying to derive some general lessons as to which type of programme works best. The effectiveness of the programmes in improving the labour market prospects of unemployed participants is assessed in terms of their impact on individual employment probability and collection of unemployment benefits over time. The evidence as to the overall effectiveness of the programmes is rather mixed, with individuals joining a programme subsequently enjoying higher employment rates but also a higher probability of drawing unemployment benefits over time than if they had searched longer in open unemployment. The renewed eligibility to unemployment compensation following participation in a programme appears to be a most critical driving force behind these results. In fact, when comparing the programme effects for individuals entitled to unemployment benefits to the programme effects for non-entitled individuals, the positive effect on participants' employment prospects disappears, being instead replaced by a much higher probability of benefit collection. Still, the various programmes may have differential effects, making it interesting to quantify the relative performance of the six main types of Swedish programmes that were available to adult unemployed workers en Titled to unemployment benefits in the 1990s: labour market training, workplace introduction, work experience placement, relief work, trainee replacement and employment subsidies. The best performer is by far employment subsidies, followed by trainee replacement. The main finding that those programmes most similar to regular employment rank unambiguously highest has however to be appraised in the light of the macroeconomic literature, which has documented large and negative displacement and dead-weight effects exactly for these types of programme.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute for Fiscal Studies in its series IFS Working Papers with number W02/03.
Length: 48 pp
Date of creation: Feb 2002
Date of revision:
Contact details of provider:
Postal: The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE
Phone: (+44) 020 7291 4800
Fax: (+44) 020 7323 4780
Web page: http://www.ifs.org.uk
More information through EDIRC
Postal: The Institute for Fiscal Studies 7 Ridgmount Street LONDON WC1E 7AE
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-04-25 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Calmfors, Lars & Forslund, Anders & Hemström, Maria, 2002.
"Does active labour market policy work? Lessons from the Swedish experiences,"
Working Paper Series
2002:4, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Calmfors, Lars & Forslund, Anders & Hemström, Maria, 2002. "Does Active Labour Market Policy Work? Lessons from the Swedish Experiences," Seminar Papers 700, Stockholm University, Institute for International Economic Studies.
- Lars Calmfors & Anders Forslund & Maria Hemström, 2002. "Does Active Labour Market Policy Work? Lessons from the Swedish Experiences," CESifo Working Paper Series 675, CESifo Group Munich.
- Carl Davidson & Stephen A. Woodbury, .
"Optimal Unemployment Insurance,"
Upjohn Working Papers and Journal Articles
cdsaw1997, W.E. Upjohn Institute for Employment Research.
- Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Wiley Blackwell, vol. 65(2), pages 261-94, April.
- Lechner, Michael, 1999. "Identification and Estimation of Causal Effects of Multiple Treatments Under the Conditional Independence Assumption," IZA Discussion Papers 91, Institute for the Study of Labor (IZA).
- Larsson, L., 2000. "Evaluation of Swedish Youth Labour Market Programmes," Papers 2000:6, Uppsala - Working Paper Series.
- Michael Gerfin & Michael Lechner, 2002.
"A Microeconometric Evaluation of the Active Labour Market Policy in Switzerland,"
Royal Economic Society, vol. 112(482), pages 854-893, October.
- Gerfin, Michael & Lechner, Michael, 2000. "Microeconometric Evaluation of the Active Labour Market Policy in Switzerland," IZA Discussion Papers 154, Institute for the Study of Labor (IZA).
- 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.
- Ridder, G, 1986. "An Event History Approach to the Evaluation of Training, Recruitment and Employment Programmes," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(2), pages 109-26, April.
- Bonnal, Liliane & Fougere, Denis & Serandon, Anne, 1997. "Evaluating the Impact of French Employment Policies on Individual Labour Market Histories," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 683-713, October.
- Melkersson, Maria, 1999. "Unemployment duration and heterogenous search behavior among Swedish disabled workers," Working Paper Series 1999:5, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 605-54, October.
- 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.
- Larsson, Laura, 2000. "Evaluation of Swedish youth labour market programmes," Working Paper Series 2000:1, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Melkersson, Maria, 1999. "Policy programmes only for a few? Participation in labour market programmes among Swedish disabled workers," Working Paper Series 1999:1, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Carling, Kenneth & Edin, Per-Anders & Holmlund, Bertil & Jansson, Fredrik, 1995. "Unemployment Duration, Unemployment Benefits, and Labour Market Programmes in Sweden," CEPR Discussion Papers 1200, C.E.P.R. Discussion Papers.
- Markus Frölich & Almas Heshmati & Michael Lechner, 2004.
"A microeconometric evaluation of rehabilitation of long-term sickness in Sweden,"
Journal of Applied Econometrics,
John Wiley & Sons, Ltd., vol. 19(3), pages 375-396.
- Frölich, Markus & Heshmati, Almas & Lechner, Michael, 2000. "A Microeconometric Evaluation of Rehabilitation of Long-term Sickness in Sweden," Working Paper Series in Economics and Finance 373, Stockholm School of Economics, revised 03 Apr 2000.
- Larsson, Laura, 2000. "Evaluation of Swedish Youth Labour Market Programmes," Working Paper Series 2000:6, Uppsala University, Department of Economics.
- Johansson, Per & Martinson, Sara, 2000. "The effect of increased employer contacts within a labour market training program," Working Paper Series 2000:10, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Silvia Loriga & Paolo Naticchioni, 2010.
"Short and long term evaluations of Public Employment Services in Italy,"
Working Papers - Dipartimento di Economia
10-DEISFOL, Dipartimento di Economia, Sapienza University of Rome, revised 2010.
- Paolo Naticchioni & Silvia Loriga, 2011. "Short and Long Term Evaluations of Public Employment Services in Italy," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 57(3), pages 201-229.
- Paolo Naticchioni & Silvia Loriga, 2010. "Short and long term evaluations of Public Employment Services in Italy," Working Papers 2010-03, Universita' di Cassino, Dipartimento di Scienze Economiche.
- Paolo, NATICHIONI & Silvia LORIGA, 2008. "Short and long term evaluations of Public Employment Services in Italy," Discussion Papers (ECON - DÃ©partement des Sciences Economiques) 2008030, Université catholique de Louvain, Département des Sciences Economiques.
- Ianchovichina, Elena & Estache, Antonio & Foucart, Renaud & Garsous, Grégoire & Yepes, Tito, 2013.
"Job Creation through Infrastructure Investment in the Middle East and North Africa,"
Elsevier, vol. 45(C), pages 209-222.
- Ianchovichina, Elena & Estache, Antonio & Foucart, Renaud & Garsous, Gregoire & Yepes, Tito, 2012. "Job creation through infrastructure investment in the Middle East and North Africa," Policy Research Working Paper Series 6164, The World Bank.
- Anders Forslund & Alan Krueger, 2010.
"Did Active Labor Market Policies Help Sweden Rebound from the Depression of the Early 1990s?,"
in: Reforming the Welfare State: Recovery and Beyond in Sweden, pages 159-187
National Bureau of Economic Research, Inc.
- Anders Forslund & Alan B. Krueger, 2008. "Did Active Labour Market Policies Help Sweden Rebound from the Depression of the Early 1990s?," Working Papers 1035, Princeton University, Department of Economics, Center for Economic Policy Studies..
- Attanasio, Orazio & Kugler, Adriana & Meghir, Costas, 2009. "Subsidizing Vocational Training for Disadvantaged Youth in Developing Countries: Evidence from a Randomized Trial," IZA Discussion Papers 4251, Institute for the Study of Labor (IZA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stephanie Seavers).
If references are entirely missing, you can add them using this form.