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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, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp7912
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    References listed on IDEAS

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    1. Kluve, Jochen, 2010. "The effectiveness of European active labor market programs," Labour Economics, Elsevier, vol. 17(6), pages 904-918, December.
    2. 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.
    3. 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.
    4. Richard Blundell & Monica Costa Dias & Costas Meghir & John Van Reenen, 2004. "Evaluating the Employment Impact of a Mandatory Job Search Program," Journal of the European Economic Association, MIT Press, vol. 2(4), pages 569-606, June.
    5. 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.
    6. Caliendo, Marco & K√ľnn, Steffen & Schmidl, Ricarda, 2011. "Fighting Youth Unemployment: The Effects of Active Labor Market Policies," IZA Discussion Papers 6222, Institute for the Study of Labor (IZA).
    7. Rosholm, Michael, 2008. "Experimental Evidence on the Nature of the Danish Employment Miracle," IZA Discussion Papers 3620, Institute for the Study of Labor (IZA).
    8. 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.
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    Cited by:

    1. 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.

    More about this item

    Keywords

    random controlled experiments; activation; youth unemployment;

    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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