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Evaluation of Swedish youth labour market programmes

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Abstract

This paper evaluates and compares the direct effects of two Swedish active labour market programmes for youth, namely youth practice and labour market training. Effectiveness of the programmes is measured by subsequent annual earnings, re-employment probability, and probability of regular education. A non-parametric matching approach based on conditional independence assumption is applied to estimate the average program effects. Moreover, the results obtained by matching are compared to results from standard linear regression and probit models, and a polychotomous selectivity model with unobserved individual heterogeneity. The results indicate either zero or negative effects of both programmes in the short run, whereas the long-run effects are mainly zero or slightly positive. The results suggest furthermore that youth practice was better than labour training. However, there is much heterogeneity in the estimated treatment effects among the individuals.

Suggested Citation

  • Larsson, Laura, 2000. "Evaluation of Swedish youth labour market programmes," Working Paper Series 2000:1, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  • Handle: RePEc:hhs:ifauwp:2000_001
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    1. Per-Anders Edin & Anders Forslund & Bertil Holmlund, 2000. "The Swedish Youth Labor Market in Boom and Depression," NBER Chapters,in: Youth Employment and Joblessness in Advanced Countries, pages 357-380 National Bureau of Economic Research, Inc.
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    Cited by:

    1. Barbara Sianesi, 2001. "Differential effects of Swedish active labour market programmes for unemployed adults during the 1990s," IFS Working Papers W01/25, Institute for Fiscal Studies.
    2. Raaum, Oddbjorn & Torp, Hege, 2002. "Labour market training in Norway--effect on earnings," Labour Economics, Elsevier, vol. 9(2), pages 207-247, April.
    3. Fredriksson, Peter & Johansson, Per, 2002. "Program Evaluation and Random Program Starts," Working Paper Series 2003:1, Uppsala University, Department of Economics.
    4. Richard Disney & Eleonora Fischera & Trudy Owens, "undated". "Has the Introduction of Microfinance Crowded-out Informal Loans in Malawi?," Discussion Papers 10/08, University of Nottingham, CREDIT.
    5. Michael Lechner, 2002. "Some practical issues in the evaluation of heterogeneous labour market programmes by matching methods," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 165(1), pages 59-82.
    6. Barbara Sianesi, 2002. "Swedish active labour market programmes in the 1990s: overall effectiveness and differential performance," IFS Working Papers W02/03, Institute for Fiscal Studies.
    7. Anders Stenberg, 2007. "Comprehensive education or vocational training for the unemployed?," International Journal of Manpower, Emerald Group Publishing, vol. 28(1), pages 42-61, April.
    8. Raaum, Oddbjørn & Torp, Hege & Zhang, Tao, 2003. "Business cycles and the impact of labour market programmes," Memorandum 14/2002, Oslo University, Department of Economics.
    9. Stenberg, Anders & Westerlund, Olle, 2008. "Does comprehensive education work for the long-term unemployed," Labour Economics, Elsevier, vol. 15(1), pages 54-67, February.
    10. Michael White and Genevieve Knight, 2003. "Benchmarking the effectiveness of NDYP: A review of European and US literature on the microeconomic effects of labour market programmes for young people," PSI Research Discussion Series 10, Policy Studies Institute, UK.
    11. Andrén, Thomas & Gustafsson, Björn Anders, 2002. "Income Effects from Labor Market Training Programs in Sweden During the 80’s and 90’s," IZA Discussion Papers 603, Institute for the Study of Labor (IZA).
    12. Reinowski, Eva, 2004. "Mikroökonometrische Evaluation und das Selektionsproblem – Ein anwendungsorientierter Überblick über nichtparametrische Lösungsverfahren –," IWH Discussion Papers 200, Halle Institute for Economic Research (IWH).
    13. Konle-Seidl, Regina, 2005. "Lessons learned: Internationale Evaluierungsergebnisse zu Wirkungen aktiver und aktivierender Arbeitsmarktpolitik," IAB-Forschungsbericht 200509, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    14. Fredriksson, Peter & Johansson, Per, 2003. "Employment, Mobility, and Active Labor Market Programs," Working Paper Series 2003:5, Uppsala University, Department of Economics.
    15. Lindgren, Urban & Westerlund, Olle, 2003. "Labour market programmes and geographical mobility: migration and commuting among programme participants and openly unemployed," Working Paper Series 2003:6, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    16. Jochen Kluve & Christoph M. Schmidt, 2002. "Can training and employment subsidies combat European unemployment?," Economic Policy, CEPR;CES;MSH, vol. 17(35), pages 409-448, October.
    17. Raaum, Oddbjørn & Torp, Hege & Zhang, Tao, 2003. "Do individual programme effects exceed the costs? Norwegian evidence on long run effects of labour market training," Memorandum 15/2002, Oslo University, Department of Economics.
    18. Sianesi, Barbara, 2001. "An evaluation of the active labour market programmes in Sweden," Working Paper Series 2001:5, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    19. Rabe, Birgitta, 2000. "Wirkungen aktiver Arbeitsmarktpolitik: Evaluierungsergebnisse für Deutschland, Schweden, Dänemark und die Niederlande," Discussion Papers, Research Unit: Labor Market Policy and Employment FS I 00-208, Social Science Research Center Berlin (WZB).

    More about this item

    Keywords

    Active labour market policies; Balancing score; Evaluation; Matching; Propensity score; Selection; Treatment effects;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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