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The Relative Efficiency of Active Labour Market Policies: Evidence from a Social Experiment and Non-Parametric Methods

Johan Vikström (), Michael Rosholm and Michael Svarer

No 5596, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We re-analyze 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: treatment effect; active labour market policy; non-parametric bounds (search for similar items in EconPapers)
JEL-codes: C14 C41 C93 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2011-03
New Economics Papers: this item is included in nep-eur, nep-exp and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Published - published in: Labour Economics, 2013, 24, 58-67

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Working Paper: The Relative Efficiency of Active Labour Market Policies: Evidence From a Social Experiment and Non-Parametric Methods (2011) Downloads
Working Paper: The Relative Efficiency of Active Labour Market Policies: Evidence From a Social Experiment and Non-Parametric Methods (2011) Downloads
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