Labor Market Programs, the Discouraged-worker Effect, and Labor Force Participation

Johansson, Kerstin

doi:10.2139/ssrn.318899

Cited by 11 publications

(15 citation statements)

References 10 publications

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“…Recent work in Lechner and Wunsch (2006), Lechner, Miquel, and Wunsch (2007), Johansson (2001), Kluve (2007), and others emphasize that the effects of active labor market programs in Europe depend on the state of the economy, typically finding a direct relationship between their effectiveness and the unemployment rate. For the United States, Hotz, Imbens, and Klerman (2006) present evidence for California pointing to an inverse relationship between the labor market programs and the unemployment rate.…”

Section: Introductionmentioning

confidence: 99%

Learning but Not Earning? The Impact of Job Corps Training on Hispanic Youth

Flores‐Lagunes

González²,

Neumann

2010

Economic Inquiry

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"Why did Hispanics who participated in Job Corps (JC) training not experience earnings gains like whites and blacks, despite achieving similar human capital gains? We find that the differential labor market outcomes of each group are related to the different levels of local labor market unemployment rates (LUR) they face. Furthermore, the groups exhibit differential impacts on their earnings from the LUR they face, which also vary by randomization status. We find that (a) blacks and Hispanics face higher LUR that mitigate their potential gains from JC and (b) JC "shields" whites from adverse LUR, but not blacks and Hispanics." ("JEL" J24, J13, J15) Copyright (c) 2009 Western Economic Association International.

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Section: Introductionmentioning

confidence: 99%

Learning but Not Earning? The Impact of Job Corps Training on Hispanic Youth

Flores‐Lagunes

González²,

Neumann

2010

Economic Inquiry

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“…Employment subsidies instead directly decrease labour costs for firms. ALMP participation may also have a positive effect on labour force participation, in that it increases the motivation to actively seek work and therefore increases the competition for the jobs available (Johansson, 2001).…”

Section: The Theoretical Effects Of Almpsmentioning

confidence: 99%

Evaluating the Dynamic Effects of Active Labour Policies in Italy

Altavilla

Caroleo

2006

Labour

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This paper analyses whether active labour market policies (ALMPs) have differing effects on unemployment and employment dynamics according to the particular region in which they are implemented. To this end, it analyses alternative theoretical and econometric models thought to capture the possible effects of active labour market policies on labour force dynamics. The econometric methodologies implemented are the generalized method of moment (GMM) and the panel vector autoregression (P-VAR). The evidence yielded by the GMM models suggests that the effects of different ALMPs on unemployment are dissimilar across the Italian regions. It follows that some active programmes are likely to have a greater effect in the South than in the North. The results of the P-VAR models estimated are synthesized by impulse response analysis and forecast error variance decomposition. The impulse response analysis suggests that an increase in total ALMP gives rise to: (i) a decrease in the unemployment rate; and (ii) a significant increase in labour force participation. More interestingly, the results obtained from the error variance decomposition analysis show that unemployment movements are not driven by shocks in the ALMPs and that, especially in the northern regions, atypical contracts shocks account for a substantial portion of unemployment dynamics. Copyright 2006 The Authors; Journal compilation 2006 CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd..

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“…24 On the positive side, there is some evidence that ALMPs have encouraged labor force participation, which may have facilitated the employment rebound in the late 1990s. Johansson (2001) examined panel data on labor market programs and labor force participation for Swedish municipalities over the period [1986][1987][1988][1989][1990][1991][1992][1993][1994][1995][1996][1997][1998]. She found that a rise in program 24 Calmfors et al (2001) present a comprehensive survey of Swedish experiences of active labor market policies.…”

Section: Active Labor Market Policymentioning

confidence: 99%

The Rise and Fall of Swedish Unemployment

Holmlund

2006

Structural Unemployment in Western Europe

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By international standards, unemployment in Sweden remained remarkably low throughout the 1970s and the 1980s. In the early 1990s, however, the unemployment rate skyrocketed and hit double-digit levels. Unemployment remained high for several years but exhibited a marked fall from 1997 and onwards. The paper describes this development and discusses the causes of the rise and fall of unemployment. It is argued that the steep rise in unemployment was mainly the result of a series of adverse macroeconomic shocks, partly self-inflicted by bad policies and partly caused by unfavourable international developments. Institutional factors, such as a trend increase in the generosity of unemployment insurance, caused some secular rise in NAIRU but do not appear as promising explanations of the events of the early 1990s. The fall in unemployment in the late 1990s reflects a combination of favorable macroeconomic conditions and structural factors that may have reduced the NAIRU.

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Labor Market Programs, the Discouraged-worker Effect, and Labor Force Participation

Cited by 11 publications

References 10 publications

Learning but Not Earning? The Impact of Job Corps Training on Hispanic Youth

Learning but Not Earning? The Impact of Job Corps Training on Hispanic Youth

Evaluating the Dynamic Effects of Active Labour Policies in Italy

The Rise and Fall of Swedish Unemployment

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