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The aggregate labor market effects of the Swedish knowledge lift program

Author

Listed:
  • Albrecht, James

    (Department of Economics, Georgetown University)

  • van den Berg, Gerard J

    (IFAU - Institute for Evaluation of Labour Market and Education Policy)

  • Vroman, Susan

    (Department of Economics, Georgetown University)

Abstract

The Swedish adult education program known as the Knowledge Lift (1997-2002) was unprecedented in its size and scope, aiming to raise the skill level of large numbers of low-skill workers. This paper evaluates the potential effects of this program on aggregate labor market outcomes. This is done by calibrating an equilibrium search model with heterogeneous worker skills using pre-program data and then forecasting the program impacts. Our calibrations suggest that the equilibrium treatment effects were positive - wages are predicted to increase, as are the employment rates of the treated. The equilibrium effects magnify the partial effects by a factor 1.5 to 2. This is due to the increase in demand for skills that is triggered by the increase in its supply.

Suggested Citation

  • Albrecht, James & van den Berg, Gerard J & Vroman, Susan, 2007. "The aggregate labor market effects of the Swedish knowledge lift program," Working Paper Series 2008:1, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    • Handle: RePEc:hhs:ifauwp:2008_001
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Job search; policy evaluation; wages; unemployment; Swedish labor market; calibration; adult education; equilibrium effects;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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