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Identifying treatment effects of active labour market programmes for Norwegian adults

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  • Zhang, Tao

    (Ragnar Frisch Centre for Economic Research)

Abstract

We investigate treatment effects of active labour market programmes for Norwegian adults for the 1990 to 2000 period. Three types of active labour market programmes are evaluated within a competing risks hazard rate model. Non-parametric specifications on both duration dependence and unobserved heterogeneities are used. By utilising rich administrative data, we find that active labour market programmes do have intended effects on enhancing the transition probability to employment after the completion of programmes participation, but during the participation, the transition probability is low relative to that for non-participants. There is some evidence of heterogeneity of treatment effects with respect to observed individual characteristics, and effects for training programmes and wage subsidy programmes are pro-cyclical and more favourable at boom time. The positive treatment effects of labour market programmes are long lasting, at the same time diminish gradually over time when individuals remain in unemployment after completion of programmes. The net impact of active labour market programmes in terms of reduced total amount of unemployment exposure is estimated to be about 6.42%.

Suggested Citation

  • Zhang, Tao, 2003. "Identifying treatment effects of active labour market programmes for Norwegian adults," Memorandum 26/2003, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:2003_026
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    File URL: http://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2003/Memo-26-2003.pdf
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    References listed on IDEAS

    as
    1. Jaap H. Abbring & Gerard J. Van Den Berg, 2003. "The identifiability of the mixed proportional hazards competing risks model," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 65(3), pages 701-710, August.
    2. Arild Aakvik & James J. Heckman & Edward J. Vytlacil, 2000. "Treatment Effects for Discrete Outcomes when Responses to Treatment Vary Among Observationally Identical Persons: An Application to Norwegian ..," NBER Technical Working Papers 0262, National Bureau of Economic Research, Inc.
    3. Jaap H. Abbring & Gerard J. van den Berg, 2003. "The Nonparametric Identification of Treatment Effects in Duration Models," Econometrica, Econometric Society, vol. 71(5), pages 1491-1517, September.
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    Cited by:

    1. Trine Filges & Geir Smedslund & Anne‐Sofie Due Knudsen & Anne‐Marie Klint Jørgensen, 2015. "Active Labour Market Programme Participation for Unemployment Insurance Recipients: A Systematic Review," Campbell Systematic Reviews, John Wiley & Sons, vol. 11(1), pages 1-342.
    2. Annette Bergemann & Gerard J. Van Den Berg, 2008. "Active Labor Market Policy Effects for Women in Europe - A Survey," Annals of Economics and Statistics, GENES, issue 91-92, pages 385-408.
    3. Pernilla Andersson Joona & Lena Nekby, 2012. "Intensive Coaching of New Immigrants: An Evaluation Based on Random Program Assignment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(2), pages 575-600, June.
    4. Rainer Eppel & Helmut Mahringer, 2013. "Do Wage Subsidies Work in Boosting Economic Inclusion? Evidence on Effect Heterogeneity in Austria," WIFO Working Papers 456, WIFO.
    5. Emil Mihaylov, 2011. "Evaluation of Subsidized Employment Programs for Long-Term Unemployed in Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 136-167.
    6. Rainer Eppel & Helmut Mahringer, 2012. "Do wage subsidies work in boosting economic inclusion? Evidence on e," EcoMod2012 4065, EcoMod.
    7. 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, December.
    8. Nekby, Lena, 2008. "Active labor market programs for the integration of youths and immigrants into the labor market: the Nordic experience," Macroeconomía del Desarrollo 5441, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    9. Kluve, Jochen, 2010. "The effectiveness of European active labor market programs," Labour Economics, Elsevier, vol. 17(6), pages 904-918, December.
    10. Kluve, Jochen, 2006. "The Effectiveness of European Active Labor Market Policy," IZA Discussion Papers 2018, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    labour market programmes; treatment effects; competing risk; non-parametric estimation.;
    All these keywords.

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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