How to minimize lock-in effects of programs for unemployed workers

Conny Wunsch

IZA World of Labor, 2016, No 288, 288

Abstract: Activation programs, such as job search assistance, training, or work experience programs for unemployed workers, typically initially produce negative employment effects. These so-called “lock-in effects” occur because participants spend less time and effort on job search activities than non-participants. Lock-in effects need to be offset by sufficiently large post-participation employment or earnings for the programs to be cost-effective. They represent key indirect costs that are often more important than direct program costs. The right timing and targeting of these programs can improve their cost-effectiveness by reducing lock-in effects.

Keywords: skills-training programs; program evaluation; lock-in effects (search for similar items in EconPapers)
JEL-codes: J68 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (11)

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