The relative efficiency of active labour market policy: evidence from a social experiment and non-parametric methods
We reanalyze the effects of a Danish active labour market program social experiment, that included a range of sub-treatments, including monitoring, job search assistance and training. Previous studies have shown that the overall effect of the experiment is positive. We apply newly developed non-parametric methods to determine which of the individual policies that explains the positive effect. The use of non-parametric methods to separate sub-treatment effects is important from a methodological point of view, since the alternative, namely parametric/distributional assumptions, is in conflict with the concept of experimental evidence. Our results are highly relevant in a policy perspective, as optimal labour market policy design requires knowledge on the effectiveness of specific policy measures.
|Date of creation:||27 Jun 2011|
|Date of revision:|
|Publication status:||Published as Vikström, Johan, Michael Rosholm and Michael Svarer, 'The effectiveness of active labor market policies: Evidence from a social experiment using non-parametric bounds' in Labour Economics, 2013, pages 58-67.|
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