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The relative efficiency of active labour market policy: evidence from a social experiment and non-parametric methods

  • Vikström, Johan

    ()

    (IFAU - Institute for Labour Market Policy Evaluation)

  • Rosholm, Michael

    ()

    (Department of Economics and Business, Aarhus University)

  • Svarer, Michael

    ()

    (Department of Economics and Business, Aarhus University)

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.

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Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2011:7.

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Length: 29 pages
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.
Handle: RePEc:hhs:ifauwp:2011_007
Contact details of provider: Postal: IFAU, P O Box 513, SE-751 20 Uppsala, Sweden
Phone: (+46) 18 - 471 70 70
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  1. David Card & Jochen Kluve & Andrea Weber, 2009. "Active Labor Market Policy Evaluations: A Meta-analysis," CESifo Working Paper Series 2570, CESifo Group Munich.
  2. Rosholm, Michael, 2008. "Experimental Evidence on the Nature of the Danish Employment Miracle," Working Papers 08-14, University of Aarhus, Aarhus School of Business, Department of Economics.
  3. Hägglund, Pathric, 2006. "Are there pre-programme effects of Swedish active labour market policies? Evidence from three randomised experiments," Working Paper Series 2006:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  4. van den Berg, Gerard J. & van der Klaauw, Bas, 2001. "Counseling and Monitoring of Unemployed Workers: Theory and Evidence from a Controlled Social Experiment," IZA Discussion Papers 374, Institute for the Study of Labor (IZA).
  5. Ridder, Geert & Vikström, Johan, 2011. "Bounds On Treatment Effects On Transitions," Working Paper Series, Center for Labor Studies 2011:3, Uppsala University, Department of Economics.
  6. Dan A. Black & Jose Galdo & Jeffrey A. Smith, 2007. "Evaluating the Worker Profiling and Reemployment Services System Using a Regression Discontinuity Approach," American Economic Review, American Economic Association, vol. 97(2), pages 104-107, May.
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