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The Employment Effects of Active Social Policy

Author

Listed:
  • Bolvig, Iben

    (VIVE - The Danish Centre for Applied Social Science)

  • Jensen, Peter

    (Aarhus University)

  • Rosholm, Michael

    (Aarhus University)

Abstract

We analyse the effects of active social policy (ASP) on the dynamics of welfare dependence. We evaluate the impact of various ASP measures (employment and training) on the duration of welfare spells and subsequent employment spells, based on data from Denmark. The results show that employment measures improve the chances of leaving welfare dependence whereas training measures have detrimental effects on the exit rate from welfare spells. We investigate the optimal timing of ASP and show that there is a case for assigning individuals to early participation in employment programmes, as the net effect is larger the earlier participation begins.

Suggested Citation

  • Bolvig, Iben & Jensen, Peter & Rosholm, Michael, 2003. "The Employment Effects of Active Social Policy," IZA Discussion Papers 736, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp736
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    More about this item

    Keywords

    welfare dependence; active social policy; employment effects;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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