The relative efficiency of labor market programs: Swedish experience from the 1990's

Kenneth Carling () and Katarina Richardson ()
Additional contact information
Kenneth Carling: IFAU - Office of Labour Market Policy Evaluation, Postal: Labour Market Policy Evaluation, P O Box 513, SE-751 20 Uppsala, Sweden, http://www.ifau.se
Katarina Richardson: IFAU - Office of Labour Market Policy Evaluation, Postal: Labour Market Policy Evaluation, P O Box 513, SE-751 20 Uppsala, Sweden, http://www.ifau.se

No 2001:2, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: This paper estimates the relative efficiency of eight Swedish labor market programs in reducing the unemployment duration for participants. The analysis uses a hazard regression model and a uniquely large and rich administrative data set that contains all adult workers who became unemployed during 1995-1997. We find that programs in which the participants obtain subsidized work experience and training provided by firms, have better outcome than classroom vocational training. The relative efficiency is similar across demographic and skill groups and independent of the timing of the placement. A careful examination of the assignment process to programs reveals no self-selection, but substantial administrative-selection. However, the administrative-selection appears to be unrelated to the outcome and, thus, should not bias the results.

Keywords: Empirical Bayes methods; Employment duration; Program evaluation; Proxy variables; Selection bias; Simulations (search for similar items in EconPapers)
JEL-codes: C14 C24 J64 J68 J69 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2001-03-09
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

Published in Labour Economics, 2004, pages 335-354.

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