Job-search Incentives From Labour Market Programs - an Empirical Analysis

Lars Geerdsen and Anders Holm ()

No 2004-03, CAM Working Papers from University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics

Abstract: In this paper we examine whether the prospect of compulsory programme participation motivates individuals to leave the unemployment insurance (UI) system prior to participation. We analyze data from the Danish labour market. Here a series of reforms have enforced program participation and gradually restricted the duration of unemployment before individuals must enroll into programmes. However, there is substantial heterogeneity in enrollment probabilities. If individuals want to avoid participation and observe the heterogeneity in participation, this will also affect their search behaviour. We estimate a model for anticipatory effects of participation, allowing for heterogeneity, on search behaviour and find large significant effects from anticipation of enrollment on the exit probability out of unemployment.

Keywords: active labour market measures; hazard rates; unobserved heterogeneity (search for similar items in EconPapers)
JEL-codes: C41 I21 J64 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2004-03
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:kud:kuieca:2004_03

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