Working Paper Series
IFAU - Institute for Evaluation of Labour Market and Education Policy
James Albrecht, Gerard J van den Berg
The aggregate labor market effects of the Swedish knowledge lift program
() and Susan Vroman
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.
Keywords: Job search; policy evaluation; wages; unemployment; Swedish labor market; calibration; adult education; equilibrium effects; (follow links to similar papers)
JEL-Codes: I21; (follow links to similar papers)
29 pages, December 20, 2007
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