About 3% of GNP is spent on government labor market programs in Sweden, compared to 2% in Germany and less than 0.5% in the U.S. In Sweden these programs include extensive job training, public sector relief work, recruitment subsidies, youth programs, mobility bonuses, and unemployment benefits. Using county-level data, we provide new evidence that public relief workers displace other workers, especially in the construction sector. Our review of the previous literature suggests that job training programs have small effects on wages and re-employment in Sweden, but precise inferences are difficult because of small sample sizes. We also investigate alternative reasons for the stability of the Beveridge Curve in Sweden, and compare regional evolutions of employment and unemployment in Sweden and the U.S. Lastly, we present cross-country analysis for 1993 which, contrary to studies that use earlier data, shows that the extent of a country's active labor market programs is positively associated with the national unemployment rate.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
4802.
Length: Date of creation: Jul 1994 Date of revision: Publication status: published relationship to a non-chapter. This should not happen. Please contact NBER. Handle: RePEc:nbr:nberwo:4802
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Find related papers by JEL classification: J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy
References listed on IDEAS 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.:
Bean, C R & Layard, P R G & Nickell, S J, 1986.
"The Rise in Unemployment: A Multi-country Study,"
Economica,
London School of Economics and Political Science, vol. 53(210(S)), pages S1-22, Supplemen.
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