Working Paper Series
IFAU - Institute for Evaluation of Labour Market and Education Policy
Screening through activation: differential effects of a youth activation programme
(), Kaisa Kotakorpi, Linus Liljeberg
() and Jukka Pirttilä
Abstract: We study the anatomy of responses to a major activation
programme targeted at unemployed youth, introduced in Sweden in 2007. We
use a regression discontinuity design to analyse individual reactions to
the programme. We find that individuals who have a relatively high
predicted probability of finding a job respond to the threat of activation,
whereas there is no significant effect for individuals in a weaker labour
market position. This is consistent with activation programmes working as a
screening device between those who are able to find work on their own vs.
those who are not. In addition to examining traditional predictors of poor
labour market outcomes (e.g. education and school dropout status), we find
a strong concentration of health problems among individuals with poor
labour market prospects. We use register data covering the entire Swedish
population, including very detailed information on health.
Keywords: activation; unemployment; health; school drop-outs; (follow links to similar papers)
JEL-Codes: I10; J64; J68; (follow links to similar papers)
62 pages, September 15, 2016
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