Scandinavian Working Papers in Economics
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IFAU - Institute for Evaluation of Labour Market and Education Policy Working Paper Series
IFAU - Institute for Evaluation of Labour Market and Education Policy

No 2004:18:
Employment subsidies - A fast lane from unemployment to work?

Anders Forslund (), Per Johansson () and Linus Lindqvist ()

Abstract: The treatment effect of a Swedish employment subsidy is estimated using exact covariate-matching and instrumental variables methods. Our estimates suggest that the programme had a positive treatment effect for the participants.

We also show how non-parametric methods can be used to estimate the time profile of treatment effects as well as how to estimate the effect of entering the programme at different points in time in the unemployment spell.

Our main results are derived using matching methods. However, as a sensitivity test, we apply instrumental variables difference-in-difference methods. These estimates indicate that our matching results are robust

Keywords: Evaluation; employment subsidies; exact covariate-matching; (follow links to similar papers)

JEL-Codes: C14; C41; J23; J38; J68; (follow links to similar papers)

50 pages, December 20, 2004

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