Scandinavian Working Papers in Economics

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

No 2002:10: Does early intervention help the unemployed youth?

Kenneth Carling () and Laura Larsson
Additional contact information
Kenneth Carling: IFAU - Insitute for Labour Market Policy Evaluation, Postal: Labour Market Policy Evaluation, P O Box 513, SE-751 20 Uppsala, Sweden
Laura Larsson: IFAU - Insitute for Labour Market Policy Evaluation, Postal: Labour Market Policy Evaluation, P O Box 513, SE-751 20 Uppsala, Sweden

Abstract: This paper evaluates a measure targeted at unemployed individuals aged 20-24. The main purpose of the measure is to prevent long-term unemployment by guaranteeing an assignment to some labor market program within 100 days of unemployment. Municipalities voluntarily agree to offer the guarantee. To identify the effect of the measure, we use three conditions: The guarantee covers individuals aged 24 but not 25, one fifth of the municipalities does not provide the guarantee, and the guarantee existed in 1998 but not in 1997. We find no evidence that the measure did significantly improve the future labor market situation of the youth, which suggests that early intervention in the unemployment spell is not important.

Keywords: Guarantee; program evaluation; regression-discontinuity design

JEL-codes: C14; J64; J68

31 pages, June 24, 2002

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