Program participation, labor force dynamics, and accepted wage rates

Jakob Roland Munch and Lars Skipper

A chapter in Modelling and Evaluating Treatment Effects in Econometrics, 2008, pp 197-262 from Emerald Group Publishing Limited

Abstract: We apply a recently suggested econometric approach to measure the effects of active labor market programs on employment, unemployment, and wage histories among participants. We find that participation in most of these training programs produces an initial locking-in effect and for some even a lower transition rate from unemployment to employment upon completion. Most programs, therefore, increase the expected duration of unemployment spells. However, we find that the training undertaken while unemployed successfully increases the expected duration of subsequent spells of employment for many subpopulations. These longer spells of employment come at a cost of lower accepted hourly wage rates.

Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:eme:aecozz:s0731-9053(07)00008-4

DOI: 10.1016/S0731-9053(07)00008-4

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