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Screening through Activation? Differential Effects of a Youth Activation Program

Author

Listed:
  • Caroline Hall
  • Kaisa Kotakorpi
  • Linus Liljeberg
  • Jukka Pirttilä

Abstract

We study the dual role of active labor market policies: First, ALMP may perform a screening role by increasing job-search incentives, especially among individuals with good labor market prospects, already before program participation. Second, actual program participation may help individuals with poor labor market prospects. We examine whether this type of pattern can be found in individual responses to a nationwide youth activation program in Sweden using an RD-design. We find that individuals with a high predicted probability of finding work respond to the threat of activation, whereas there is no effect for individuals with weak labor market prospects.

Suggested Citation

  • Caroline Hall & Kaisa Kotakorpi & Linus Liljeberg & Jukka Pirttilä, 2020. "Screening through Activation? Differential Effects of a Youth Activation Program," Working Papers 2030, Tampere University, Faculty of Management and Business, Economics.
    • Handle: RePEc:tam:wpaper:2030
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    File URL: http://urn.fi/URN:ISBN:978-952-03-1609-9
    File Function: First version, 2020
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    Citations

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    Cited by:

    1. Pierre Cahuc, 2018. "France: Social protection for the self-employed," Sciences Po Economics Publications (main) hal-03391918, HAL.
    2. repec:spo:wpmain:info:hdl:2441/602aa43c1m81vpubigl4eotn45 is not listed on IDEAS
    3. 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.
    4. Joonas Ollonqvist & Kaisa Kotakorpi & Mikko Laaksonen & Pekka Martikainen & Jukka Pirttilä & Lasse Tarkiainen, 2025. "Incentives, Health, and Retirement: Evidence From a Finnish Pension Reform," Health Economics, John Wiley & Sons, Ltd., vol. 34(3), pages 537-572, March.
    5. Claus Thustrup Kreiner & Michael Svarer, 2022. "Danish Flexicurity: Rights and Duties," Journal of Economic Perspectives, American Economic Association, vol. 36(4), pages 81-102, Fall.
    6. Jonas Maibom, 2023. "The Welfare Effects Of Mandatory Reemployment Programs: Combining A Structural Model And Experimental Data," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 64(2), pages 607-640, May.
    7. Pierre Cahuc, 2018. "France: Social protection for the self-employed," SciencePo Working papers hal-03391918, HAL.

    More about this item

    JEL classification:

    • 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
    • I10 - Health, Education, and Welfare - - Health - - - General

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