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The Relative Efficiency of Active Labour Market Policies: Evidence From a Social Experiment and Non-Parametric Methods

Author

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  • Vikström, Johan

    () (Uppsala Center for Labor Studies)

  • Rosholm, Michael

    () (Department of Economics and Business, Aarhus University)

  • Svarer, Michael

    () (Department of Economics and Business, Aarhus University)

Abstract

We re-analyze 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.

Suggested Citation

  • Vikström, Johan & Rosholm, Michael & Svarer, Michael, 2011. "The Relative Efficiency of Active Labour Market Policies: Evidence From a Social Experiment and Non-Parametric Methods," Working Paper Series, Center for Labor Studies 2011:4, Uppsala University, Department of Economics.
  • Handle: RePEc:hhs:uulswp:2011_004
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    References listed on IDEAS

    as
    1. Gerard J. van den Berg & Bas van der Klaauw, 2006. "Counseling And Monitoring Of Unemployed Workers: Theory And Evidence From A Controlled Social Experiment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(3), pages 895-936, August.
    2. David Card & Jochen Kluve & Andrea Weber, 2010. "Active Labour Market Policy Evaluations: A Meta-Analysis," Economic Journal, Royal Economic Society, vol. 120(548), pages 452-477, November.
    3. Anders Frederiksen & Niels Westergaard-Nielsen, 2002. "Where did they go?," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 D3-2, International Conferences on Panel Data.
    4. 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.
    5. Torben Andersen & Michael Svarer, 2007. "Flexicurity – Labour Market Performance in Denmark," CESifo Working Paper Series 2108, CESifo Group Munich.
    6. Charles F. Manski & John V. Pepper, 2000. "Monotone Instrumental Variables, with an Application to the Returns to Schooling," Econometrica, Econometric Society, vol. 68(4), pages 997-1012, July.
    7. Ashenfelter, Orley & Ashmore, David & Deschenes, Olivier, 2005. "Do unemployment insurance recipients actively seek work? Evidence from randomized trials in four U.S. States," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 53-75.
    8. Rosholm, Michael, 2008. "Experimental Evidence on the Nature of the Danish Employment Miracle," IZA Discussion Papers 3620, Institute for the Study of Labor (IZA).
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    Cited by:

    1. Alessio Brown & Johannes Koettl, 2015. "Active labor market programs - employment gain or fiscal drain?," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-36, December.
    2. Torben Andersen & Michael Svarer, 2012. "Active labour market policies in a recession," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-19, December.
    3. Gautier, Pieter A. & Muller, Paul & van der Klaauw, Bas & Rosholm, Michael & Svarer, Michael, 2012. "Estimating Equilibrium Effects of Job Search Assistance," IZA Discussion Papers 6748, Institute for the Study of Labor (IZA).
    4. Saniter, Nils & Siedler, Thomas, 2014. "The Effects of Occupational Knowledge: Job Information Centers, Educational Choices, and Labor Market Outcomes," IZA Discussion Papers 8100, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Active labour market policy; treatment effect; non-parametric bounds;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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