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The Aggregate Labor Market Effects of the Swedish Knowledge Lift Program

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Author Info

  • Albrecht, James

    ()
    (Georgetown University)

  • van den Berg, Gerard J.

    ()
    (University of Mannheim)

  • Vroman, Susan

    ()
    (Georgetown University)

Abstract

The Swedish adult education program known as the Knowledge Lift (1997-2002) was unprecedented in its size and scope, aiming to raise the skill level of large numbers of low-skill workers. This paper evaluates the potential effects of this program on aggregate labor market outcomes. This is done by calibrating an equilibrium search model with heterogeneous worker skills using pre-program data and then forecasting the program impacts. We compare the forecasts to observed aggregate labor market outcomes after termination of the program.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2385.

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Length: 26 pages
Date of creation: Oct 2006
Date of revision:
Publication status: published in: Review of Economic Dynamics, 2009, 12(1), 129-146
Handle: RePEc:iza:izadps:dp2385

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Related research

Keywords: calibration; returns to education; program evaluation; wages; unemployment; job search; Swedish labor market;

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References

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  1. Robert Shimer, 2005. "The Cyclical Behavior of Equilibrium Unemployment and Vacancies," American Economic Review, American Economic Association, American Economic Association, vol. 95(1), pages 25-49, March.
  2. Albrecht, James & van den Berg, Gerard J. & Vroman, Susan, 2005. "The Knowledge Lift: The Swedish Adult Education Program That Aimed to Eliminate Low Worker Skill Levels," IZA Discussion Papers 1503, Institute for the Study of Labor (IZA).
  3. Edin, P.-A. & Fredriksson, P., 2000. "LINDA - Longitudinal INdividual DAta for Sweden," Papers, Uppsala - Working Paper Series 2000:19, Uppsala - Working Paper Series.
  4. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
  5. Berg, G. van den & Gautier, P.A. & Ours, J.C. van & Ridder, G., 1998. "Worker turnover at the firm level and crowding out of lower educated workers," Discussion Paper, Tilburg University, Center for Economic Research 98.104, Tilburg University, Center for Economic Research.
  6. Barbara Petrongolo & Christopher A. Pissarides, 2000. "Looking Into the Black Box: A Survey of the Matching Function," CEP Discussion Papers dp0470, Centre for Economic Performance, LSE.
  7. Lise, Jeremy & Seitz, Shannon & Smith, Jeffrey A., 2003. "Equilibrium Policy Experiments and the Evaluation of Social Programs," IZA Discussion Papers 758, Institute for the Study of Labor (IZA).
  8. 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, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(1), pages 283-305, February.
  9. Stenberg, Anders, 2003. "An Evaluation of the Adult Education Initiative Relative Labor Market Training," UmeÃ¥ Economic Studies 609, Umeå University, Department of Economics.
  10. Davidson, Carl & Matusz, Steven J. & Shevchenko, Andrei, 2008. "Globalization and firm level adjustment with imperfect labor markets," Journal of International Economics, Elsevier, Elsevier, vol. 75(2), pages 295-309, July.
  11. 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, OECD Publishing 18, OECD Publishing.
  12. 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, Federal Reserve Bank of Chicago WP-03-25, Federal Reserve Bank of Chicago.
  13. Richardson, Katarina & van den Berg, Gerard J., 2006. "Swedish Labor Market Training and the Duration of Unemployment," IZA Discussion Papers 2314, Institute for the Study of Labor (IZA).
  14. Heckman, James J & Lochner, Lance & Taber, Christopher, 1998. "General-Equilibrium Treatment Effects: A Study of Tuition Policy," American Economic Review, American Economic Association, American Economic Association, vol. 88(2), pages 381-86, May.
  15. 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, IFAU - Institute for Evaluation of Labour Market and Education Policy 2001:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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Citations

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Cited by:
  1. Speckesser, Stefan & Fitzenberger, Bernd & Bergemann, Annette, 2004. "Evaluating the Dynamic Employment Effects of Training Programs in East Germany Using Conditional Difference-in-Differences," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 04-41, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Ronald P. Wolthoff, 2010. "Applications and Interviews: A Structural Analysis of Two-Sided Simultaneous Search," Working Papers tecipa-418, University of Toronto, Department of Economics.
  3. Alexius, Annika & Holmlund, Bertil, 2007. "Monetary Policy and Swedish Unemployment Fluctuations," IZA Discussion Papers 2933, Institute for the Study of Labor (IZA).
  4. Bergemann, Annette & van den Berg, Gerard J., 2008. "From Giving Birth to Paid Labor: The Effects of Adult Education for Prime-Aged Mothers," IZA Discussion Papers 3600, Institute for the Study of Labor (IZA).
  5. Richardson, Katarina & van den Berg, Gerard J, 2008. "Duration dependence versus unobserved heterogeneity in treatment effects: Swedish labor market training and the transition rate to employment," Working Paper Series, IFAU - Institute for Evaluation of Labour Market and Education Policy 2008:7, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  6. Singer, Christine & Toomet, Ott-Siim, 2013. "On government-subsidized training programs for older workers," IAB Discussion Paper 201321, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  7. Natalya Y. Shelkova, 2009. "Collusion at the Non-Binding Minimum Wage: An Automatic Stabilizer?," Working papers, University of Connecticut, Department of Economics 2009-41, University of Connecticut, Department of Economics.
  8. Stenberg, Anders & Westerlund, Olle, 2014. "The long-term earnings consequences of general vs. specific training of the unemployed," Working Paper Series, IFAU - Institute for Evaluation of Labour Market and Education Policy 2014:3, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  9. Volker Meier, 2010. "Programmauswahl in der aktiven Arbeitsmarktpolitik durch Selbstbeteiligung?," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 63(17), pages 27-29, 09.
  10. Lamo, Ana & Messina, Julián & Wasmer, Etienne, 2010. "Are Specific Skills an Obstacle to Labor Market Adjustment?," IZA Discussion Papers 5250, Institute for the Study of Labor (IZA).

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