Workfare for the old and long-term unemployed

Helge Bennmarker, Oskar Skans and Ulrika Vikman

No 2012:7, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: We estimate the effects of conditioning benefits on program participation among older long-term unemployed workers. We exploit a Swedish reform which reduced UI duration from 90 to 60 weeks for a group of older unemployed workers in a setting where workers who exhausted their benefits received unchanged transfers if they agreed to participate in a work practice program. Our results show that job finding increased as a result of the shorter duration of passive benefits. The time profile of the job-finding effects suggests that the effects are due to deterrence effects during the program-entry phase. We find no evidence of wage reductions, suggesting that the increased job-finding rate was driven by increased search intensity rather than lower reservation wages.

Keywords: Activation; program evaluation; UI; duration (search for similar items in EconPapers)
JEL-codes: J26 J64 J65 J68 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2012-04-11
New Economics Papers: this item is included in nep-age, nep-lab and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published as Bennmarker, Helge, Oskar Nordström Skans and Ulrika Vikman, 'Workfare for the old and long-term unemployed' in Labour Economics, 2013, pages 25-34.

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Related works:
Journal Article: Workfare for the old and long-term unemployed (2013)
Working Paper: Workfare for the old and long-term unemployed (2012)
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