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Screening through Activation: Differential Effects of a Youth Activation Programme

Author

Listed:
  • Caroline Hall
  • Kaisa Kotakorpi
  • Linus Liljeberg
  • Jukka Pirttilä

Abstract

We study the dual role of active labour market policies: First, ALMP may perform a screening role by increasing job-finding rates among individuals with good labour market prospects, already prior to programme participation. Second, actual program participation may help individuals with poor labour market prospects. We demonstrate how these effects arise within a search theoretic framework. Utilizing an RD design, we analyse responses to a nationwide Swedish youth activation program. We find that individuals with a high predicted probability of finding work respond to the threat of activation, whereas there is no effect for individuals with weak labour market prospects.

Suggested Citation

  • Caroline Hall & Kaisa Kotakorpi & Linus Liljeberg & Jukka Pirttilä, 2017. "Screening through Activation: Differential Effects of a Youth Activation Programme," CESifo Working Paper Series 6305, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_6305
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    File URL: http://www.cesifo-group.de/DocDL/cesifo1_wp6305.pdf
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    References listed on IDEAS

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    Cited by:

    1. Pierre Cahuc, 2018. "France: Social protection for the self-employed," Sciences Po publications info:hdl:2441/602aa43c1m8, Sciences Po.

    More about this item

    Keywords

    activation; unemployment; regression discontinuity; screening;

    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
    • I10 - Health, Education, and Welfare - - Health - - - General

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