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The Employment Effects of Active Social Policy

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Author Info
Bolvig, Iben (Aarhus School of Business)
Jensen, Peter () (Aarhus School of Business and IZA Bonn)
Rosholm, Michael (University of Aarhus and IZA Bonn)

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Abstract

We analyse the effects of active social policy (ASP) on the dynamics of welfare dependence. We evaluate the impact of various ASP measures (employment and training) on the duration of welfare spells and subsequent employment spells, based on data from Denmark. The results show that employment measures improve the chances of leaving welfare dependence whereas training measures have detrimental effects on the exit rate from welfare spells. We investigate the optimal timing of ASP and show that there is a case for assigning individuals to early participation in employment programmes, as the net effect is larger the earlier participation begins.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 736.

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Length: 46 pages
Date of creation: Mar 2003
Date of revision:
Handle: RePEc:iza:izadps:dp736

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Related research
Keywords: employment effects; welfare dependence; active social policy;

Find related papers by JEL classification:
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy

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Cited by:
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  1. Damm, Anna Piil & Rosholm, Michael, 2003. "Employment Effects of Dispersal Policies on Refugee Immigrants, Part II: Empirical Evidence," IZA Discussion Papers 925, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Weber, Andrea & Hofer, Helmut, 2003. "Active Job-search Programs a Promising Tool? A Microeconometric Evaluation for Austria," Economics Series 131, Institute for Advanced Studies. [Downloadable!]
  3. Ott-Siim Toomet, 2005. "Does an Increase in Unemployment Income Lead to Longer Unemployment Spells? Evidence Using Danish Unemployment Assistance Data," Bank of Estonia Working Papers 2005-09, Bank of Estonia, revised 10 Oct 2005. [Downloadable!]
  4. Tamilina, Larysa, 2008. "The analysis of welfare state effects on social trust in a multidimensional approach," IRISS Working Paper Series 2008-03, IRISS at CEPS/INSTEAD. [Downloadable!]
  5. McVicar, Duncan & Podivinsky, Jan M, . "Does the Impact of Active Labor Market Programs Depend on the State of the Labor Market? The Case of the UK New Deal for Young People," Discussion Paper Series In Economics And Econometrics 0704, Economics Division, School of Social Sciences, University of Southampton. [Downloadable!]
  6. Bart Cockx & Henri Sneessens & Bruno Van der linden, 2004. "Allégements de charges sociales : une mesure à promouvoir mais à réformer," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(1), pages 55-68. [Downloadable!]
  7. Michael Rosholm & Michael Svarer, 2004. "Estimating the Threat Effect of Active Labour Market Programmes," CAM Working Papers 2004-14, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics. [Downloadable!]
    Other versions:
  8. Wolfgang Ochel, 2004. "Welfare-to-Work Experiences with Specific Work-First Programmes in Selected Countries," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  9. Jeff Borland & Yi-Ping Tseng, 2004. "Does 'Work for the Dole' Work?," Melbourne Institute Working Paper Series wp2004n14, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
  10. Koch, Susanne & Stephan, Gesine & Walwei, Ulrich, 2005. "Workfare: Möglichkeiten und Grenzen," IAB Discussion Paper 200517, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]. [Downloadable!]
  11. Jochen Kluve, 2006. "The Effectiveness of European Active Labor Market Policy," IZA Discussion Papers 2018, Institute for the Study of Labor (IZA). [Downloadable!]
  12. Hohmeyer, Katrin & Wolff, Joachim, 2007. "A fistful of Euros: Does One-Euro-Job participation lead means-tested benefit recipients into regular jobs and out of unemployment benefit II receipt?," IAB Discussion Paper 200732, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]. [Downloadable!]
  13. Piil Damm, Anna & Rosholm, Michael, 2005. "Employment Effects of Dispersal Policies on Refugee Immigrants: Empirical Evidence," Working Papers 04-20, University of Aarhus, Aarhus School of Business, Department of Economics. [Downloadable!]
  14. Koch, Susanne & Stephan, Gesine & Walwei, Ulrich, 2005. "Workfare: Möglichkeiten und Grenzen (Workfare : possibilities and limits)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(2/3), pages 419-440. [Downloadable!]
  15. Brian Krogh Graversen & Peter Jensen, 2006. "A Reappraisal of the Virtues of Private Sector Employment Programmes," IZA Discussion Papers 2230, Institute for the Study of Labor (IZA). [Downloadable!]
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