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Employment effects of active labor market programs for sick-listed workers

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  • Holm, Anders
  • Høgelund, Jan
  • Gørtz, Mette
  • Rasmussen, Kristin Storck
  • Houlberg, Helle Sofie Bøje

Abstract

We use register data of 88,948 sick-listed workers in Denmark over the period 2008–2011 to investigate the effect of active labor market programs on the duration until returning to non-subsidized employment and the duration of this employment. To identify causal treatment effects, we exploit over-time variation in the use of active labor market programs in 98 job centers and time-to- event. We find that ordinary education and subsidized job training have significant positive employment effects. Subsidized job training has a large, positive effect on the transition into employment but no effect on the subsequent employment duration. In contrast, ordinary education has a positive effect on employment duration but no effect on the transition into employment. The latter effect is the result of two opposing effects, a large positive effect of having completed education and a large negative lock-in effect, with low re-employment chances during program participation.

Suggested Citation

  • Holm, Anders & Høgelund, Jan & Gørtz, Mette & Rasmussen, Kristin Storck & Houlberg, Helle Sofie Bøje, 2017. "Employment effects of active labor market programs for sick-listed workers," Journal of Health Economics, Elsevier, vol. 52(C), pages 33-44.
  • Handle: RePEc:eee:jhecon:v:52:y:2017:i:c:p:33-44
    DOI: 10.1016/j.jhealeco.2017.01.006
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    References listed on IDEAS

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    Cited by:

    1. Hernæs, Øystein, 2018. "Activation against absenteeism – Evidence from a sickness insurance reform in Norway," Journal of Health Economics, Elsevier, vol. 62(C), pages 60-68.
    2. Lombardi, Stefano & van den Berg, Gerard J. & Vikström, Johan, 2020. "Empirical Monte Carlo evidence on estimation of Timing-of-Events models," Working Paper Series 2020:26, IFAU - Institute for Evaluation of Labour Market and Education Policy, revised 05 Jan 2021.
    3. Pons Rotger, Gabriel & Rosholm, Michael, 2020. "The Role of Beliefs in Long Sickness Absence: Experimental Evidence from a Psychological Intervention," IZA Discussion Papers 13582, Institute of Labor Economics (IZA).
    4. Nisar Ahmad & Michael Svarer & Amjad Naveed, 2019. "The Effect of Active Labour Market Programmes and Benefit Sanctions on Reducing Unemployment Duration," Journal of Labor Research, Springer, vol. 40(2), pages 202-229, June.
    5. De Graaf-Zijl, Marloes & Spijkerman, Marcel & Zwinkels, Wim, 2020. "Long-Term Effects of Individual Placement and Support Services for Disability Benefits Recipients with Severe Mental Illnesses," IZA Discussion Papers 13772, Institute of Labor Economics (IZA).

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