Scandinavian Working Papers in Economics

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

No 2007:27: Labour market programmes and labour market outcomes: a study of the Swedish active labour market interventions

Jérôme Adda , Mònica Costa Dias (), Costas Meghir and Barbara Sianesi
Additional contact information
Jérôme Adda: Institute for Fiscal Studies, Postal: London
Mònica Costa Dias: Institute for Fiscal Studies, Postal: London
Costas Meghir: Institute for Fiscal Studies, Postal: London
Barbara Sianesi: Institute for Fiscal Studies, Postal: London

Abstract: This paper assesses the impact of Swedish welfare-to-work programmes on labour market performance including wages, labour market status, unemployment duration and future welfare-to-work participation. We develop a structural dynamic model of labour supply which incorporates detailed institutional features of these policies and allows for selection on observables and unobservables. We estimate the model from a rich administrative panel data set and show that training programmes - which account for a large proportion of programmes - have a little effect on future outcomes, whereas job experience programmes have a beneficial effect.

Keywords: Labour market programmes; labour market outcomes

JEL-codes: J65

65 pages, October 25, 2007

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