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Screening through Activation: Differential Effects of a Youth Activation Programme

Author

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

Abstract

We study the dual role of active labour market policies: First, ALMP may perform a screening role by increasing job-finding rates among individuals with good labour market prospects, already prior to programme participation. Second, actual program participation may help individuals with poor labour market prospects. We demonstrate how these effects arise within a search theoretic framework. Utilizing an RD design, we analyse responses to a nationwide Swedish youth activation program. 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 labour market prospects.

Suggested Citation

  • Caroline Hall & Kaisa Kotakorpi & Linus Liljeberg & Jukka Pirttilä, 2017. "Screening through Activation: Differential Effects of a Youth Activation Programme," CESifo Working Paper Series 6305, CESifo.
    • Handle: RePEc:ces:ceswps:_6305
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    References listed on IDEAS

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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. 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.
    4. 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.
    5. 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.
    6. Pierre Cahuc, 2018. "France: Social protection for the self-employed," SciencePo Working papers Main hal-03391918, HAL.
    7. Pierre Cahuc, 2018. "France: Social protection for the self-employed," SciencePo Working papers hal-03391918, HAL.
    8. Pierre Cahuc, 2018. "France: Social protection for the self-employed," Post-Print hal-03391918, HAL.
    9. repec:spo:wpmain:info:hdl:2441/602aa43c1m81vpubigl4eotn45 is not listed on IDEAS

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    More about this item

    Keywords

    activation; unemployment; regression discontinuity; screening;
    All these keywords.

    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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