The relative efficiency of labor market programs: Swedish experience from the 1990s

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu W O R K I N G P A P E R 2 0 0 1 : 2 Terms of use: Documents in EconStor mayThe relative efficiency of labor market programs: Swedish experience from the 1990´sKenneth Carling, Katarina Richardson Abstract This paper estimates the relative efficiency of eight Swedish labor market programs in reducing the unemployment duration for participants. The analysis uses a hazard regression model and a uniquely large and rich administrative data set that contains all adult workers who became unemployed during 1995-1997. We find that programs in which the participants obtain subsidized work experience and training provided by firms, have better outcome than classroom vocational training. The relative efficiency is similar across demographic and skill groups and independent of the timing of the placement. A careful examination of the assignment process to programs reveals no self-selection, but substantial administrative-selection. However, the administrative-selection appears to be unrelated to the outcome and, thus, should not bias the results.

Active labor market programs - employment gain or fiscal drain?

“…The role of public employment as a stabilizer during periods of low labor demand was, thereby, undermined; temporary public programs beyond short-term participation are ineffective, and participation may actually lower employment probability and Rodriguez-Planas and Benus (2008) for more recent analyses. Furthermore, the lack of usefulness of public works in generating medium-to longer-run effects is supported by Carling and Richardson (2004) as well as Sianesi (2008), who conclude in their evaluations that the closer an ALMP is to regular work the better its effects for the participants. The evidence from Autor and Houseman (2010) from Detroit's Work First program cleary underlines the relevance of regular work experience for employment and earnings.…”

“…Various reviews of studies around the world ) focused on OECD countries , and especially evaluations for Sweden (Sianesi, 2008;Carling and Richardson, 2004), highlight that private sector hiring subsidies can generally be more effective in benefiting the targeted workers by bringing them into employment than public education and training measures or public works Evidence for various countries shows that hiring subsidies outperform other ALMPs in terms of post program employability 70 . A survey by Neumark (2013) of US evidence highlights that, using unfavorable estimates, hiring subsidies are at least more than twice as effective as public job creation.…”

Eingliederungszuschüsse und Entlohnung: empirische Evidenz auf Basis von Individualdaten

“…They showed that participants had much higher subsequent employment rates than similar unemployed persons, who did not take up a subsidized job. Likewise, evidence for Britain (Dorsett 2006) and Sweden (Sianesi 2008;Carling and Richardson 2004;Fredriksson and Johansson 2008;Forslund et al 2004) suggested that wage subsidies had a positive effect on employment probabilities of the participants. Turning to the few results from social experiments on subsidy vouchers, Burtless (1985) found that unemployed persons with a voucher were less likely to find employment than job-seekers without vouchers.…”

Kids or courses? Gender differences in the effects of active labor market policies

“…For business start-up programs in Sweden, we refer to Carling and Gustafson (1999). For training measures comprising formal qualification, further training of any kind, and retraining, see Richardson and van den Berg (2001) and Carling and Richardson (2004) for Sweden and Gerfin and Lechner (2002) and Hujer et al (2005) for Switzerland and Germany. investigate long-run effects for Germany.…”