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Screening through Activation? Differential Effects of a Youth Activation Program

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  • Caroline Hall
  • Kaisa Kotakorpi
  • Linus Liljeberg
  • Jukka Pirttilä

Abstract

We study the dual role of active labor market policies. First, active labor market programs (ALMPs) may perform a screening role by increasing job-search incentives already before program participation, especially among individuals with good labor market prospects. Second, actual program participation may help individuals with poor labor market prospects. We examine whether this type of pattern can be found in individual responses to a nationwide youth activation program in Sweden using a regression discontinuity (RD) design. We find that individuals with a high predicted probability of finding work respond to the threat of activation, whereas there is no effect for individuals with weak labor market prospects.

Suggested Citation

  • Caroline Hall & Kaisa Kotakorpi & Linus Liljeberg & Jukka Pirttilä, 2022. "Screening through Activation? Differential Effects of a Youth Activation Program," Journal of Human Resources, University of Wisconsin Press, vol. 57(3), pages 1033-1077.
    • Handle: RePEc:uwp:jhriss:v:57:y:2022:i:3:p:1033-1077
    Note: DOI: 10.3368/jhr.57.3.1117-9182R1
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    Cited by:

    1. Ollonqvist, Joonas & Kotakorpi, Kaisa & Laaksonen, Mikko & Martikainen, Pekka & Pirttilä, Jukka & Tarkiainen, Lasse, 2021. "Incentives, Health, and Retirement: Evidence from a Finnish Pension Reform," Working Papers 145, VATT Institute for Economic Research.
    2. repec:hal:spmain:info:hdl:2441/602aa43c1m81vpubigl4eotn45 is not listed on IDEAS
    3. Claus Thustrup Kreiner & Michael Svarer, 2022. "Danish Flexicurity: Rights and Duties," Journal of Economic Perspectives, American Economic Association, vol. 36(4), pages 81-102, Fall.
    4. Caroline Hall & Inés Hardoy & Kristine Simson, 2024. "Policies for young adults with reduced work capacity. Labour market impact in Sweden and Norway," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(1), pages 1-33, March.
    5. Pierre Cahuc, 2018. "France: Social protection for the self-employed," SciencePo Working papers Main hal-03391918, HAL.
    6. repec:spo:wpmain:info:hdl:2441/602aa43c1m81vpubigl4eotn45 is not listed on IDEAS
    7. Jonas Maibom, 2023. "The Welfare Effects Of Mandatory Reemployment Programs: Combining A Structural Model And Experimental Data," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 64(2), pages 607-640, May.
    8. Pierre Cahuc, 2018. "France: Social protection for the self-employed," SciencePo Working papers hal-03391918, HAL.
    9. Pierre Cahuc, 2018. "France: Social protection for the self-employed," Post-Print hal-03391918, HAL.

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    More about this item

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • I10 - Health, Education, and Welfare - - Health - - - General

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