The youth unemployment rate in Denmark has recently been declining dramatically, which is unique among the OECD countries. In 1996, a radical labour market reform was implemented, the Youth Unemployment Programme (YUP), directed towards unemployed, low-educated youth. This paper analyses the effects of the implementation of the YUP. We investigate the effects on the duration of unemployment spells and on the transition rates from unemployment to schooling and employment. We find that the YUP has been successful through a combination of three effects: an announcement effect, a direct programme effect, and a sanction effect.
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Paper provided by Centre for Labour Market and Social Research, Danmark- in its series Papers with number
99-05.
Length: 20 pages Date of creation: 1999 Date of revision: Handle: RePEc:fth:clmsre:99-05
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Find related papers by JEL classification: C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis I21 - Health, Education, and Welfare - - Education - - - Analysis of Education J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings
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