Scandinavian Working Papers in Economics

Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy

No 2002:7: An evaluation of the Swedish trainee replacement schemes

Hans Sacklén ()
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Hans Sacklén: IFAU - Insitute for Labour Market Policy Evaluation, Postal: Labour Market Policy Evaluation, P O Box 513, SE-751 20 Uppsala, Sweden

Abstract: This paper estimates the employment effects of the Swedish trainee replacement schemes (an active labour market program that was in operation during the 1990s). The empirical analysis exploits a large and rich administrative data set, and we control for observed and unobserved selection bias by using a multiple equation model and the maximum likelihood estimation method. The estimation results point at a selection of participants having a high ex ante probability of employment. In addition, the results suggest that participation in replacement schemes increased the re-employment probability by 5 to 10 percentage points.

Keywords: Traninee replacement schemes; labour market program

JEL-codes: J64

33 pages, April 8, 2002

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