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Differential Effects of Active Labour Market Programmes in the Early Stages of Young People's Unemployment

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  • Hämäläinen, Kari
  • Ollikainen, Virve

Abstract

This study evaluates the long-run effects of Finnish active labour market programmes in youth labour markets. The effectiveness of programmes is measured by a number of outcomes, including employment, unemployment, programme participation, education, being out of the labour force and annual earnings. A non-parametric propensity score matching approach adapted for the case of multiple programmes is applied to estimate the average programme effects. Our results point out distinct variation in the success of programmes, and indicate that job placement and labour market training are successful not only in promoting employment but also in increasing the earnings of participants. The largest of all programmes, youth practical training, is not found to have any impacts on young persons? labour market careers. Keywords: active labour market programmes, propensity score, matching, heterogeneous treatment effects JEL classification: C14, J13, J68

Suggested Citation

  • Hämäläinen, Kari & Ollikainen, Virve, 2004. "Differential Effects of Active Labour Market Programmes in the Early Stages of Young People's Unemployment," Research Reports 115, VATT Institute for Economic Research.
    • Handle: RePEc:fer:resrep:115
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    File URL: https://www.doria.fi/handle/10024/148580
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    Cited by:

    1. Kelly, Elish & McGuinness, Seamus & O'Connell, Philip J., 2011. "What Can Active Labour Market Policies Do?," Papers EC1, Economic and Social Research Institute (ESRI).
    2. Kluve, Jochen & Fertig, Michael & Jacobi, Lena & Nima, Leonhard & Schaffner, Sandra & Schmidt, Christoph M. & Card, David & Góra, Marek & Jensen, Peter & Leetmaa, Reelika & Patacchini, Eleonora & van , 2005. "Study on the effectiveness of ALMPs: Research project for the European Commission, DG Employment, Social Affairs and Equal Opportunities. Final report," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 69929.
    3. International Monetary Fund, 2007. "Finland: Selected Issues," IMF Staff Country Reports 2007/278, International Monetary Fund.
    4. Rodokanakis Stavros, 2010. "The Dynamics of Regional Labour Markets and Training Programmes: Greek Evidence," European Spatial Research and Policy, Sciendo, vol. 17(1), pages 93-115, June.
    5. Aki Kangasharju, 2007. "Do Wage Subsidies Increase Employment in Subsidized Firms?," Economica, London School of Economics and Political Science, vol. 74(293), pages 51-67, February.
    6. Jochen Kluve, 2006. "The Effectiveness of European Active Labor Market Policy," RWI Discussion Papers 0037, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
    7. Jekaterina Dmitrijeva, 2008. "Does Unemployed Training Increase Individual Employability? Evidence from Latvian Microdata," Documents de recherche 08-04, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    8. Kluve, Jochen, 2010. "The effectiveness of European active labor market programs," Labour Economics, Elsevier, vol. 17(6), pages 904-918, December.
    9. Stavros Rodokanakis & Vasileios A. Vlachos, 2012. "Measuring the Unemployment Risk in Northern Greece from the LFS Micro-Data during the Period 1994-2006," Review of Economic Analysis, Digital Initiatives at the University of Waterloo Library, vol. 4(2), pages 224-246, December.
    10. Kluve, Jochen, 2006. "The Effectiveness of European Active Labor Market Policy," RWI Discussion Papers 37, RWI - Leibniz-Institut für Wirtschaftsforschung.
    11. Marco Caliendo & Ricarda Schmidl, 2016. "Youth unemployment and active labor market policies in Europe," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-30, December.
    12. Kluve, Jochen, 2006. "The Effectiveness of European Active Labor Market Policy," IZA Discussion Papers 2018, Institute of Labor Economics (IZA).
    13. Stavros Rodokanakis & Irini Moustaki, 2010. "Evaluating the risk of unemployment: comparison between the two most populated Greek regions with the entire country," IWE Working Papers 194, Institute for World Economics - Centre for Economic and Regional Studies.
    14. repec:zbw:rwidps:0037 is not listed on IDEAS
    15. Quintini, Glenda & Martin, John P. & Martin, Sébastien, 2007. "The Changing Nature of the School-to-Work Transition Process in OECD Countries," IZA Discussion Papers 2582, Institute of Labor Economics (IZA).
    16. Tuomala, Juha & Hämäläinen, Kari, 2007. "Vocational Labour Market Training in Promoting Youth Employment," Discussion Papers 432, VATT Institute for Economic Research.
    17. Clément Kouadio Kouakou, 2010. "Politique active d'emploi et employabilité des jeunes dans la ville d'Abidjan," Documents de travail 159, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
    18. RODOKANAKIS, Stavros & VLACHOS, Vasileios, 2010. "A Non-Experimental Evaluation Of Education And Training In Greece: The Cases Of Northern Aegean And Crete," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 10(1).
    19. Rainer Eppel & Helmut Mahringer, 2012. "Do wage subsidies work in boosting economic inclusion? Evidence on e," EcoMod2012 4065, EcoMod.
    20. Bartolucci, Francesco & Grilli, Leonardo & Pieroni, Luca, 2012. "Estimating dynamic causal effects with unobserved confounders: a latent class version of the inverse probability weighted estimator," MPRA Paper 43430, University Library of Munich, Germany.
    21. World Demographic and Ageing Forum & David Bell & Alison Bowes & Axel Heitmueller, 2007. "Did the Introduction of Free Personal Care in Scotland in a Reduction of Informal Care?," Journal Article y:2007:i:1, World Demographic and Ageing Forum.
    22. Stavros Rodokanakis, 2010. "A Non-Experimental Evaluation of Unemployment Risk in Crete and the Ionian Islands: Regional Evidence for Greece," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2010(4), pages 44-63.
    23. Virve Ollikainen, 2006. "Gender Differences in Transitions from Unemployment: Micro Evidence from Finland," LABOUR, CEIS, vol. 20(1), pages 159-198, March.
    24. Rodokanakis Stavros, 2009. "Comparing the Probability of Unemployment in Southern Greece Vis-À-Vis the Entire Country," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 12(12), pages 17-43, January.

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    More about this item

    Keywords

    Active labour market programmes; propensity score; matching; heterogeneous treatment effects; Labour market; Työmarkkinat; Labor market and policies promoting economic growth; Työmarkkinat ja kasvua tukeva politiikka; C140 - Semiparametric and Nonparametric Methods; J130 - Fertility; Family Planning; Child Care; Children; Youth; J680 - Mobility; Unemployment; and Vacancies: Public Policy (Employment Services);
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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