The relative efficiency of active labour market policy: evidence from a social experiment and non-parametric methods

Johan Vikström (), Michael Rosholm and Michael Svarer

No 2011:7, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: We reanalyze the effects of a Danish active labour market program social experiment, that included a range of sub-treatments, including monitoring, job search assistance and training. Previous studies have shown that the overall effect of the experiment is positive. We apply newly developed non-parametric methods to determine which of the individual policies that explains the positive effect. The use of non-parametric methods to separate sub-treatment effects is important from a methodological point of view, since the alternative, namely parametric/distributional assumptions, is in conflict with the concept of experimental evidence. Our results are highly relevant in a policy perspective, as optimal labour market policy design requires knowledge on the effectiveness of specific policy measures.

Keywords: Active labour market policy; treatment effect; non-parametric bounds (search for similar items in EconPapers)
JEL-codes: C14 C41 C93 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2011-06-27
New Economics Papers: this item is included in nep-eur and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published as Vikström, Johan, Michael Rosholm and Michael Svarer, 'The effectiveness of active labor market policies: Evidence from a social experiment using non-parametric bounds' in Labour Economics, 2013, pages 58-67.

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