Direct displacement effects of labour market programmes: the case of Sweden

Matz Dahlberg () and Anders Forslund ()

No 1999:7, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: Using a panel of 260 Swedish municipalities over the period 1987-1996, this paper investigates the direct displacement effects of active labour market programmes (ALMPs). Compared to earlier studies on this topic, we have more and better data. From our GMM estimations, we find that (i) there are direct displacement effects from those ALMPs that generate subsidised labour (in the order of approximately 65 percent), but there seems to be no (significant) displacement effects from training, (ii) most ALMPs seem to increase labour force participation, and (iii) the adjustment to the optimal level of employment seems to be sluggish. A consequence of (ii) is that the earlier studies have overstated the displacement effects (since they nomalised with the labour force).

Keywords: Labour market programmes; Displacement effects; GMM estimation (search for similar items in EconPapers)
JEL-codes: J30 (search for similar items in EconPapers)
Pages: 40 pages
Date: 1999-10-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

Forthcoming in Scandinavian Journal of Economics.

Downloads: (external link)
http://www.ifau.se/upload/pdf/se/to2000/wp99-7.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.ifau.se/upload/pdf/se/to2000/wp99-7.pdf [301 Moved Permanently]--> https://www.ifau.se/upload/pdf/se/to2000/wp99-7.pdf)

Related works:
Working Paper: Direct Displacement Effects of Labour Market Programmes: the Case of Sweden (1999)
Working Paper: Direct Displacement Effects of Labour Market Programmes: The Case of Sweden (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:ifauwp:1999_007

Access Statistics for this paper

More papers in Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy IFAU, P O Box 513, SE-751 20 Uppsala, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Ali Ghooloo ( this e-mail address is bad, please contact ).