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Swedish Youth Labour Market Policies Revisited

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  • Anders Forslund
  • Oskar Nordström Stans

Abstract

The paper studies the relative effectiveness of various Swedish labour market policies for young workers. Using age discontinuities which define the policy regime each individual is covered by, we present quasi-experimental evidence on the relative efficiency of different policy regimes currently in use. Results suggest that youth policies are more effective than the policies covering other unemployed. The effects mainly appear early in the unemployment spell; we find no evidence of positive long run effects. To uncover which part of the policies that accounts for the positive effect, we use matching techniques to study the relative effectiveness of youth programmes and general adult programmes which are available also for the young. The results indicate that youth programmes are significantly less effective than programmes for adults. Overall, the evidence suggest that youth policies speed up the transition from unemployment to jobs either due to pre-programme deterrence effects or because of more intense job search support from the public employment services before the programmes. Dieser Beitrag behandelt die Effektivität der Arbeitsmarktpolitik für junge Erwachsene in Schweden. Durch Nutzung von Altersunterschieden beim Eintritt in die verschiedenen Programme lässt sich die relative Wirksamkeit der Maßnahmen als quasinatürliches Experiment bestimmen. Die Ergebnisse zeigen, dass Maßnahmen für junge Erwachsene effektiver sind als Maßnahmen für andere Arbeitslose. Dieser Effekt tritt vor allem bei kurzer Arbeitslosigkeit ein. Um die Wirksamkeit der einzelnen Maßnahmen zu testen, verwenden wir Matching-Verfahren. Dabei werden auch die allgemeinen Arbeitsmarktprogramme einbezogen, die ebenfalls von jungen Erwachsenen wahrgenommen werden. Dabei zeigt sich, dass die Programme selbst für junge Erwachsene weniger effektiv sind als die für andere Erwachsene. Insgesamt zeigt sich, dass Programme für junge Erwachsene den Übergang aus der Arbeitslosigkeit in die Beschäftigung beschleunigen, entweder weil sie die Teilnehmer abschrecken oder weil die Jobsuche im Vorfeld der Programme besser gefördert wird.

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  • Anders Forslund & Oskar Nordström Stans, 2006. "Swedish Youth Labour Market Policies Revisited," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 75(3), pages 168-185.
  • Handle: RePEc:diw:diwvjh:75-3-10
    DOI: 10.3790/vjh.75.3.168
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    2. Quintini, Glenda & Martin, John P. & Martin, Sébastien, 2007. "The Changing Nature of the School-to-Work Transition Process in OECD Countries," IZA Discussion Papers 2582, Institute of Labor Economics (IZA).
    3. Katja Kaufmann & Luigi Pistaferri, 2009. "Disentangling Insurance and Information in Intertemporal Consumption Choices," American Economic Review, American Economic Association, vol. 99(2), pages 387-392, May.
    4. Pekkarinen, Tuomas & Uusitalo, Roope & Pekkala Kerr, Sari, 2006. "Education Policy and Intergenerational Income Mobility: Evidence from the Finnish Comprehensive School Reform," IZA Discussion Papers 2204, Institute of Labor Economics (IZA).
    5. Annette Bergemann & Gerard J. Van Den Berg, 2008. "Active Labor Market Policy Effects for Women in Europe - A Survey," Annals of Economics and Statistics, GENES, issue 91-92, pages 385-408.
    6. Bennmarker, Helge & Skans, Oskar Nordström & Vikman, Ulrika, 2013. "Workfare for the old and long-term unemployed," Labour Economics, Elsevier, vol. 25(C), pages 25-34.
    7. Philip de Jong & Maarten Lindeboom & Bas van der Klaauw, 2011. "Screening Disability Insurance Applications," Journal of the European Economic Association, European Economic Association, vol. 9(1), pages 106-129, February.
    8. Lalive, Rafael, 2008. "How do extended benefits affect unemployment duration A regression discontinuity approach," Journal of Econometrics, Elsevier, vol. 142(2), pages 785-806, February.
    9. Mike Brewer, 2007. "Welfare reform in the UK: 1997 - 2007," IFS Working Papers W07/20, Institute for Fiscal Studies.
    10. Cockx, Bart & Dejemeppe, Muriel, 2007. "Is the Notification of Monitoring a Threat to the Unemployed? A Regression Discontinuity Approach," IZA Discussion Papers 2854, Institute of Labor Economics (IZA).
    11. Anders Forslund & Alan Krueger, 2010. "Did Active Labor Market Policies Help Sweden Rebound from the Depression of the Early 1990s?," NBER Chapters, in: Reforming the Welfare State: Recovery and Beyond in Sweden, pages 159-187, National Bureau of Economic Research, Inc.
    12. Estevan, Fernanda & Baland, Jean-Marie, 2007. "Mortality risks, education and child labor," Journal of Development Economics, Elsevier, vol. 84(1), pages 118-137, September.
    13. Lundin, Daniela & Mörk, Eva & Öckert, Björn, 2007. "Do reduced child care prices make parents work more?," Working Paper Series 2007:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    14. Forslund, Anders, 2009. "Labour supply incentives, income support systems and taxes in Sweden," Working Paper Series 2009:30, IFAU - Institute for Evaluation of Labour Market and Education Policy.

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    More about this item

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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