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Can Active Labour Market Policies Combat Youth Unemployment?

Author

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  • Maibom, Jonas

    (Aarhus University)

  • Rosholm, Michael

    (Aarhus University)

  • Svarer, Michael

    (Aarhus University)

Abstract

Active labour market policies (ALMPs) may play an important role in preventing an increase in long-term unemployment following the Great Recession. We consider this issue for Denmark, a country relying extensively on this instrument. We present evidence on the effectiveness of ALMPs as a way of fighting youth unemployment using results from a randomised controlled trial (RCT) that intensified the use of ALMPs. The intervention was conducted after the onset of the financial crisis, and the findings are relatively unfavourable in the sense that further intensification of an already quite intensive effort for youth did not increase employment. In addition, the intensification of ALMPs seems to have in-creased transitions into sickness benefits.

Suggested Citation

  • Maibom, Jonas & Rosholm, Michael & Svarer, Michael, 2014. "Can Active Labour Market Policies Combat Youth Unemployment?," IZA Discussion Papers 7912, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp7912
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    References listed on IDEAS

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    1. Jonas Maibom & Michael Rosholm & Michael Svarer, 2017. "Experimental Evidence on the Effects of Early Meetings and Activation," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(3), pages 541-570, July.
    2. Caliendo, Marco & Künn, Steffen & Schmidl, Ricarda, 2011. "Fighting Youth Unemployment: The Effects of Active Labor Market Policies," IZA Discussion Papers 6222, IZA Network @ LISER.
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    6. Graversen, Brian Krogh & van Ours, Jan C., 2008. "How to help unemployed find jobs quickly: Experimental evidence from a mandatory activation program," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 2020-2035, October.
    7. Forslund, Anders & Fredriksson, Peter & Vikström, Johan, 2011. "What active labor market policy works in a recession?," Working Paper Series 2011:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    8. 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.
    9. Carlos A. Flores & Alfonso Flores-Lagunes & Arturo Gonzalez & Todd C. Neumann, 2012. "Estimating the Effects of Length of Exposure to Instruction in a Training Program: The Case of Job Corps," The Review of Economics and Statistics, MIT Press, vol. 94(1), pages 153-171, February.
    10. Michael Rosholm & Michael Svarer, 2008. "The Threat Effect of Active Labour Market Programmes," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(2), pages 385-401, June.
    11. Christoph Ehlert & Jochen Kluve & Sandra Schaffner, 2012. "Temporary work as an active labor market policy: Evaluating an innovative program for disadvantaged youths," Economics Bulletin, AccessEcon, vol. 32(2), pages 1765-1773.
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    Cited by:

    1. Caroline Hall & Kaisa Kotakorpi & Linus Liljeberg & Jukka Pirttilä, 2022. "Screening through Activation? Differential Effects of a Youth Activation Program," Journal of Human Resources, University of Wisconsin Press, vol. 57(3), pages 1033-1077.
    2. Zakaria Mansouri & Jaouad Laamire & Mariem Liouaeddine, 2024. "Empirical Tests on Intermediation Programmes and Labour Market Accessibility in Morocco: A Comparative Study," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 67(4), pages 1073-1088, December.
    3. Torben M. Andersen, 2017. "The Danish labor market, 2000–2016," IZA World of Labor, Institute of Labor Economics (IZA), pages 404-404, November.
    4. von Simson Kristine & Hardoy Inés, 2020. "Tackling disabilities in young age—Policies that work," IZA Journal of Labor Policy, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-27, March.
    5. Marco Caliendo & Ricarda Schmidl, 2016. "Youth unemployment and active labor market policies in Europe," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-30, December.
    6. Michael Rosholm & Mai Bjørnskov Mikkelsen & Michael Svarer, 2019. "Bridging the gap from welfare to education: Propensity score matching evaluation of a bridging intervention," PLOS ONE, Public Library of Science, vol. 14(5), pages 1-20, May.
    7. Mirela Ionela Aceleanu & Andreea Claudia Serban & Cristina Burghelea, 2015. "“Greening” the Youth Employment—A Chance for Sustainable Development," Sustainability, MDPI, vol. 7(3), pages 1-21, March.
    8. Torben M. Andersen, 2023. "The Danish labor market, 2000–2022," IZA World of Labor, Institute of Labor Economics (IZA), pages 404-404, April.
    9. Maibom, Jonas, 2021. "The Danish Labor Market Experiments: Methods and Findings," Nationaløkonomisk tidsskrift, Nationaløkonomisk Forening, vol. 2021(1), pages 1-21.
    10. Torben M. Andersen, 2019. "The Danish labor market, 2000–2018," IZA World of Labor, Institute of Labor Economics (IZA), pages 404-404, December.
    11. Marios Michaelides & Peter Mueser & Jeffrey Smith, 2019. "Youth Unemployment and U.S. Job Search Assistance Policy during the Great Recession," University of Cyprus Working Papers in Economics 13-2019, University of Cyprus Department of Economics.
    12. Caroline Hall & Inés Hardoy & Kristine Simson, 2024. "Policies for young adults with reduced work capacity. Labour market impact in Sweden and Norway," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(1), pages 1-33, March.

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    Keywords

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    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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