The Impact of Active Labor Market Programs on the Duration of Unemployment

Rafael Lalive, Jan van Ours and Josef Zweimueller
Authors registered in the RePEc Author Service: Josef Zweimüller ()

No 41, IEW - Working Papers from Institute for Empirical Research in Economics - University of Zurich

Abstract: In 1997, the Swiss government introduced active labor market programs on a large scale to improve the job chances of unemployed workers. This paper evaluates the effect of these programs on the duration of unemployment. Our evaluation methodology allows for selectivity affecting the inflow into programs. We find that in most cases the programs do not reduce the duration of unemployment. The exception is the program of temporary wage subsidies which reduces unemployment, but only for foreign workers. From a cost-benefit point of view, temporary wage subsidies seem to be the only program worthwhile pursuing.

Keywords: active labor market policy; benefit entitlement; treatment effect; bivariate duration model (search for similar items in EconPapers)
JEL-codes: C14 C41 J64 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (80)

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Persistent link: https://EconPapers.repec.org/RePEc:zur:iewwpx:041

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