Differential Effects of Active Labour Market Programmes in the Early Stages of Young People's Unemployment

Kari Hämäläinen and Virve Ollikainen

No 115, Research Reports from VATT Institute for Economic Research

Abstract: This study evaluates the long-run effects of Finnish active labour market programmes in youth labour markets. The effectiveness of programmes is measured by a number of outcomes, including employment, unemployment, programme participation, education, being out of the labour force and annual earnings. A non-parametric propensity score matching approach adapted for the case of multiple programmes is applied to estimate the average programme effects. Our results point out distinct variation in the success of programmes, and indicate that job placement and labour market training are successful not only in promoting employment but also in increasing the earnings of participants. The largest of all programmes, youth practical training, is not found to have any impacts on young persons? labour market careers. Keywords: active labour market programmes, propensity score, matching, heterogeneous treatment effects JEL classification: C14, J13, J68

Keywords: Active labour market programmes, propensity score, matching, heterogeneous treatment effects, Labour market, Työmarkkinat, Labor market and policies promoting economic growth, Työmarkkinat ja kasvua tukeva politiikka, C140 - Semiparametric and Nonparametric Methods, J130 - Fertility; Family Planning; Child Care; Children; Youth, J680 - Mobility, Unemployment, and Vacancies: Public Policy (Employment Services), (search for similar items in EconPapers)
Date: 2004
New Economics Papers: this item is included in nep-edu and nep-lab
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Citations: View citations in EconPapers (26)

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