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Labour market programmes and labour market outcomes: a study of the Swedish active labour market interventions

Author

Listed:
  • Adda, Jérôme

    (Institute for Fiscal Studies)

  • Costa Dias, Mònica

    () (Institute for Fiscal Studies)

  • Meghir, Costas

    (Institute for Fiscal Studies)

  • Sianesi, Barbara

    (Institute for Fiscal Studies)

Abstract

This paper assesses the impact of Swedish welfare-to-work programmes on labour market performance including wages, labour market status, unemployment duration and future welfare-to-work participation. We develop a structural dynamic model of labour supply which incorporates detailed institutional features of these policies and allows for selection on observables and unobservables. We estimate the model from a rich administrative panel data set and show that training programmes - which account for a large proportion of programmes - have a little effect on future outcomes, whereas job experience programmes have a beneficial effect.

Suggested Citation

  • Adda, Jérôme & Costa Dias, Mònica & Meghir, Costas & Sianesi, Barbara, 2007. "Labour market programmes and labour market outcomes: a study of the Swedish active labour market interventions," Working Paper Series 2007:27, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  • Handle: RePEc:hhs:ifauwp:2007_027
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    File URL: http://www.ifau.se/upload/pdf/se/2007/wp07-27.pdf
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    References listed on IDEAS

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    1. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
    2. David Greenberg & Karl Ashworth & Andreas Cebulla & Robert Walker, 2004. "Do Welfare-to-Work Programmes Work for Long?," Fiscal Studies, Institute for Fiscal Studies, vol. 25(1), pages 27-53, March.
    3. Dorsett, Richard, 2006. "The new deal for young people: effect on the labour market status of young men," Labour Economics, Elsevier, vol. 13(3), pages 405-422, June.
    4. Ham, John C & LaLonde, Robert J, 1996. "The Effect of Sample Selection and Initial Conditions in Duration Models: Evidence from Experimental Data on Training," Econometrica, Econometric Society, vol. 64(1), pages 175-205, January.
    5. Zvi Eckstein & Kenneth I. Wolpin, 1989. "Dynamic Labour Force Participation of Married Women and Endogenous Work Experience," Review of Economic Studies, Oxford University Press, vol. 56(3), pages 375-390.
    6. Barbara Sianesi, 2004. "An Evaluation of the Swedish System of Active Labor Market Programs in the 1990s," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 133-155, February.
    7. Carling, Kenneth & Richardson, Katarina, 2004. "The relative efficiency of labor market programs: Swedish experience from the 1990s," Labour Economics, Elsevier, vol. 11(3), pages 335-354, June.
    8. Anders Forslund & Alan B. Krueger, 1997. "An Evaluation of the Swedish Active Labor Market Policy: New and Received Wisdom," NBER Chapters,in: The Welfare State in Transition: Reforming the Swedish Model, pages 267-298 National Bureau of Economic Research, Inc.
    9. Gregory, Allan W & Veall, Michael R, 1985. "Formulating Wald Tests of Nonlinear Restrictions," Econometrica, Econometric Society, vol. 53(6), pages 1465-1468, November.
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    Citations

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    Cited by:

    1. Victoria Prowse & Peter Haan, 2008. "Employment effects of welfare reforms - Evidence from a dynamic structural life-cycle model," Economics Series Working Papers 391, University of Oxford, Department of Economics.
    2. Peter Haan & Victoria Prowse, 2010. "A structural approach to estimating the effect of taxation on the labour market dynamics of older workers," Econometrics Journal, Royal Economic Society, vol. 13(3), pages 99-125, October.
    3. Haan, Peter & Prowse, Victoria L., 2010. "The Design of Unemployment Transfers: Evidence from a Dynamic Structural Life-Cycle Model," IZA Discussion Papers 4792, Institute for the Study of Labor (IZA).
    4. Mike Brewer & Monica Costa Dias & Jonathan Shaw, 2013. "How taxes and welfare distort work incentives: static lifecycle and dynamic perspectives," IFS Working Papers W13/01, Institute for Fiscal Studies.
    5. Philip Ball & Ralf Wilke, "undated". "Job seeker's allowance in Great Britain: How does the regional labour market affect the duration until job finding?," Discussion Papers 09/03, University of Nottingham, School of Economics.
    6. Joachim Wolff & Gesine Stephan, 2013. "Subsidized work before and after the German Hartz reforms: design of major schemes, evaluation results and lessons learnt," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-24, December.
    7. Nekby, Lena, 2008. "Active labor market programs for the integration of youths and immigrants into the labor market: the Nordic experience," Macroeconomía del Desarrollo 73, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    8. Peter Haan & Victoria Prowse & Arne Uhlendorff, 2008. "Employment effects of welfare reforms: Evidence from a dynamic structural life-cycle model," Working Papers halshs-00586748, HAL.
    9. Sianesi, Barbara, 2008. "Differential effects of active labour market programs for the unemployed," Labour Economics, Elsevier, vol. 15(3), pages 370-399, June.

    More about this item

    Keywords

    Labour market programmes; labour market outcomes;

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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