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Screening through activation: differential effects of a youth activation programme

Author

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  • Hall, Caroline

    (IFAU - Institute for Evaluation of Labour Market and Education Policy)

  • Kotakorpi, Kaisa

    (University of Turku, CESifo)

  • Liljeberg, Linus

    (IFAU - Institute for Evaluation of Labour Market and Education Policy)

  • Pirttilä, Jukka

    (UNU-WIDER, University of Tampere, CESifo)

Abstract

We study the anatomy of responses to a major activation programme targeted at unemployed youth, introduced in Sweden in 2007. We use a regression discontinuity design to analyse individual reactions to the programme. We find that individuals who have a relatively high predicted probability of finding a job respond to the threat of activation, whereas there is no significant effect for individuals in a weaker labour market position. This is consistent with activation programmes working as a screening device between those who are able to find work on their own vs. those who are not. In addition to examining traditional predictors of poor labour market outcomes (e.g. education and school dropout status), we find a strong concentration of health problems among individuals with poor labour market prospects. We use register data covering the entire Swedish population, including very detailed information on health.

Suggested Citation

  • Hall, Caroline & Kotakorpi, Kaisa & Liljeberg, Linus & Pirttilä, Jukka, 2016. "Screening through activation: differential effects of a youth activation programme," Working Paper Series 2016:15, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    • Handle: RePEc:hhs:ifauwp:2016_015
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Ollonqvist, Joonas & Kotakorpi, Kaisa & Laaksonen, Mikko & Martikainen, Pekka & Pirttilä, Jukka & Tarkiainen, Lasse, 2021. "Incentives, Health, and Retirement: Evidence from a Finnish Pension Reform," Working Papers 145, VATT Institute for Economic Research.
    2. Pierre Cahuc, 2018. "France: Social protection for the self-employed," Post-Print hal-03391918, HAL.
    3. repec:hal:spmain:info:hdl:2441/602aa43c1m81vpubigl4eotn45 is not listed on IDEAS
    4. repec:spo:wpmain:info:hdl:2441/602aa43c1m81vpubigl4eotn45 is not listed on IDEAS
    5. 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.
    6. 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.
    7. 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.
    8. Pierre Cahuc, 2018. "France: Social protection for the self-employed," SciencePo Working papers hal-03391918, HAL.
    9. Pierre Cahuc, 2018. "France: Social protection for the self-employed," SciencePo Working papers Main hal-03391918, HAL.

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    More about this item

    Keywords

    activation; unemployment; health; school drop-outs;
    All these keywords.

    JEL classification:

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