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Assessing the Employment Effects of Labor Market Training Programs in Sweden

Author

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  • Andrén , Daniela

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Andrén, Thomas

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

Abstract

Several studies have examined the effects of training programs on employment. Most of them assume that the effects of training are constant for all potential trainees. We use an econometric framework that allows studying the heterogeneous training effects on discrete outcomes. The treatment effect is allowed to vary depending on the trainee’s observable and unobservable characteristics, and allows selection into training to be determined in part by the trainee’s idiosyncratic treatment effect. Furthermore, we investigate the importance of the unobservables in the selection to training and how efficient the selection is with respect to the outcome. The results show small positive effects for the Swedish-born. The treatment on the treated is larger than the average treatment effect, indicating that the selection is stronger for the treated, and 40% of those treated gain by participating in training. Foreign-born have a negative effect from training the first year, with an average treatment effect larger than the treatment on the treated. From those who participated in training, only 11% experienced positive effect, while 38% were hurt by the training. The unobserved factors are important in the selection to training, as well as for the outcome. The effect of the selection is stronger for Swedish-born compared to foreign-born.

Suggested Citation

  • Andrén , Daniela & Andrén, Thomas, 2002. "Assessing the Employment Effects of Labor Market Training Programs in Sweden," Working Papers in Economics 70, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0070
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    File URL: http://hdl.handle.net/2077/2874
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Kluve, Jochen & Fertig, Michael & Jacobi, Lena & Nima, Leonhard & Schaffner, Sandra & Schmidt, Christoph M. & Card, David & Góra, Marek & Jensen, Peter & Leetmaa, Reelika & Patacchini, Eleonora & van , 2005. "Study on the effectiveness of ALMPs: Research project for the European Commission, DG Employment, Social Affairs and Equal Opportunities. Final report," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 69929, March.
    2. Jochen Kluve, 2006. "The Effectiveness of European Active Labor Market Policy," RWI Discussion Papers 0037, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
    3. Kluve, Jochen, 2010. "The effectiveness of European active labor market programs," Labour Economics, Elsevier, vol. 17(6), pages 904-918, December.
    4. Kluve, Jochen, 2006. "The Effectiveness of European Active Labor Market Policy," RWI Discussion Papers 37, RWI - Leibniz-Institut für Wirtschaftsforschung.
    5. Kluve, Jochen, 2006. "The Effectiveness of European Active Labor Market Policy," IZA Discussion Papers 2018, Institute of Labor Economics (IZA).
    6. Christian Volpe Martincus & Jerónimo Carballo, 2010. "Entering new country and product markets: does export promotion help?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(3), pages 437-467, September.
    7. Christian Volpe Martincus & Jerónimo Carballo, 2010. "Entering new country and product markets: does export promotion help?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(3), pages 437-467, September.
    8. repec:zbw:rwidps:0037 is not listed on IDEAS
    9. Nekby, Lena, 2008. "Active labor market programs for the integration of youths and immigrants into the labor market: the Nordic experience," Macroeconomía del Desarrollo 5441, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    10. Brian Krogh Graversen & Peter Jensen, 2010. "A Reappraisal of the Virtues of Private Sector Employment Programmes," Scandinavian Journal of Economics, Wiley Blackwell, vol. 112(3), pages 546-569, September.

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    More about this item

    Keywords

    labor market training; one factor model; selection; heterogeneous response; unobserved heterogeneity; treatment on the treated;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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