Abstract:We investigate the presence of short-and long-term effects from joining a Swedish labour market program vis-à-vis more intense job search in open unemployment. Overall, the impact of the program system is found to have been mixed. Joining a program has increased employment rates among participants, a result robust to a misclassification problem in the data. On the other hand it has also allowed participants to remain significantly longer on unemployment benefits and more generally in the unemployment system, this being particularly the case for those entitled individuals entering a program around the time of their unemployment benefits exhaustion.Keywords: Active labour market programs, evaluation, matching, propensity score, treatment effects, unemployment compensation, bounds, missing data. JEL classification: C14, J38, J65, J68.Acknowledgements: Above all I wish to acknowledge the numerous stimulating discussions, comments, suggestions and the continuous guidance and support offered me by my supervisor Costas Meghir. Many thanks to two anonymous referees for their constructive and detailed comments, and to Richard Blundell, Kenneth Carling, Monica Costa Dias, Bernd Fitzenberger, Anders Forslund, Kei Hirano, Hide Ichimura, Astrid Kunze, Laura Larsson, Elena Martinez, Katarina Richardson and Jeff Smith for beneficial discussions and helpful comments, and to seminar participants at IFAU, IFS, Copenhagen University and IZA for useful comments. Erich Battistin and Edwin Leuven should be separately thanked for countless stimulating discussions. Thanks also to Kerstin Johansson for the municipality-level data and to Helge Bennmark and Altin Vejsiu and especially Anders Harkman for helpful institutional information and data issues clarifications. A very special thank to Susanne Ackum Agell for her support and encouragement throughout, as well as for organising financial support through the IFAU. Financial support from the ESRC Centre for the Microeconomic Analysis of Fiscal Policy at the IFS is equally gratefully acknowledged.