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Estimating the Threat Effect of Active Labour Market Programmes

Michael Rosholm () and Michael Svarer ()

No 1300, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We combine two techniques to consistently estimate the effect of active labour market programmes and, in particular, active labour market policy regimes. Our aim is to explicitly estimate the threat effect of active labour market programmes. Based on Danish data (1998-2002) from administrative registers we find a strong and significantly positive threat effect. The threat effect is shown to reduce average unemployment duration by approximately three weeks. The implications of this result are discussed.

Keywords: timing-of-events; threat effect; active labour market policy; duration model (search for similar items in EconPapers)
JEL-codes: C41 J64 (search for similar items in EconPapers)
Date: 2004-09
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Published as: 'The Threat Effect of Active Labour Market Programmes' in: Scandinavian Journal of Economics, 2008, 110 (2), 385 - 401

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Working Paper: Estimating the Threat Effect of Active Labour Market Programmes (2004) Downloads
Working Paper: Estimating the Threat Effect of Active Labour Market Programmes (2004) Downloads
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