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The impact of active labor market programs on municipal services

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  • Mörk, Eva

    (IFAU - Institute for Labour Market Policy Evaluation)

Abstract

Just like any other employer, the municipalities can engage participants in active labor market programs in their activities. Does this possibility affect the output of municipal services? In order to answer this question a measure for output of locally provided schooling is created using factor analysis methods. It turns out that this measure is preferable to the traditionally used variable; spending. The possibility for municipalities to engage participants in active labor market programs in their activities seems to have a negative effect on the price for schooling. Prices, in turn, have a positive impact on output of schooling. Taken together, these results indicate that participants in active labor market programs contribute to production and that these contributions are not neutralized by displacement effects.

Suggested Citation

  • Mörk, Eva, 2003. "The impact of active labor market programs on municipal services," Working Paper Series 2003:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    • Handle: RePEc:hhs:ifauwp:2003_002
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    References listed on IDEAS

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    More about this item

    Keywords

    Local public services; factor analysis methods; active labor market programs;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General

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