Heterogeneous Impacts on Earnings from an Early Effort in Labor Market Programs
Kenneth Sørensen
Economics Working Papers from Department of Economics and Business Economics, Aarhus University
Abstract:
Labor market programs that are found to shorten unemployment duration might not be societal efficient if participants do not find suitable jobs in terms of stability, wages, occupation, etc. This paper investigates whether a program, that previously has been shown to lower unemployment duration, also had positive effects on jobs with respect to labor market earnings. The contribution of the paper is two-fold: First, we show that the program had positive effects on earnings in the short term for men, and in the medium and long term for men in one county, which we attribute to the mere taxing of leisure time and human capital accumulation/removal of frictions, respectively. Second, we show that the positive effects are heterogenous across earnings distributions. Taxing leisure time primarily affects low earners while human capital accumulation and removing frictions tend to help high earners.
Keywords: Active Labor Market Policies; randomized controlled trial; quantiles; earnings (search for similar items in EconPapers)
JEL-codes: J31 J64 J68 (search for similar items in EconPapers)
Pages: 29
Date: 2015-09-02
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Citations: View citations in EconPapers (2)
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Journal Article: Heterogeneous impacts on earnings from an early effort in labor market programs (2016) 
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Persistent link: https://EconPapers.repec.org/RePEc:aah:aarhec:2015-17
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