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Job-search Incentives From Labour Market Programs - an Empirical Analysis

Author

Listed:
  • Lars Pico Geerdsen

    (Danish National Institute of Social Research, Copenhagen)

  • Anders Holm

    (Department of Sociology, University of Copenhagen)

Abstract

In this paper we examine whether the prospect of compulsory programme participation motivates individuals to leave the unemployment insurance (UI) system prior to participation. We analyze data from the Danish labour market. Here a series of reforms have enforced program participation and gradually restricted the duration of unemployment before individuals must enroll into programmes. However, there is substantial heterogeneity in enrollment probabilities. If individuals want to avoid participation and observe the heterogeneity in participation, this will also affect their search behaviour. We estimate a model for anticipatory effects of participation, allowing for heterogeneity, on search behaviour and find large significant effects from anticipation of enrollment on the exit probability out of unemployment.

Suggested Citation

  • Lars Pico Geerdsen & Anders Holm, 2004. "Job-search Incentives From Labour Market Programs - an Empirical Analysis," CAM Working Papers 2004-03, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
    • Handle: RePEc:kud:kuieca:2004_03
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    File URL: http://www.econ.ku.dk/cam/wp0910/wp0203/2004-03.pdf/
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    References listed on IDEAS

    as
    1. Michael Gerfin & Michael Lechner, 2002. "A Microeconometric Evaluation of the Active Labour Market Policy in Switzerland," Economic Journal, Royal Economic Society, vol. 112(482), pages 854-893, October.
    2. Dan A. Black & Jeffrey A. Smith & Mark C. Berger & Brett J. Noel, 2003. "Is the Threat of Reemployment Services More Effective Than the Services Themselves? Evidence from Random Assignment in the UI System," American Economic Review, American Economic Association, vol. 93(4), pages 1313-1327, September.
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    Cited by:

    1. 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, Fall.

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    More about this item

    Keywords

    active labour market measures; hazard rates; unobserved heterogeneity;
    All these keywords.

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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