Scandinavian Working Papers in Economics

Memorandum,
Oslo University, Department of Economics

No 14/2002: Business cycles and the impact of labour market programmes

Oddbjørn Raaum (), Hege Torp () and Tao Zhang ()
Additional contact information
Oddbjørn Raaum: Ragnar Frisch Centre for Economic Research, Postal: Gaustadalléen 21, N-0349 Oslo, Norway
Hege Torp: Institute for Social Research, Oslo, Postal: Postbox 3233 Elisenberg, N-0208 Oslo, Norway
Tao Zhang: Ragnar Frisch Centre for Economic Research, Postal: Gaustadalléen 21, N-0349 Oslo, Norway

Abstract: By comparing mean outcomes for a large number of matched samples of participants and nonparticipants we estimate individual earnings effect of the Norwegian labour market training programme (LMT) targeted at unemployed adults in the years 1991-1996. The average training effect on the trained is positive, even after three years. The training effect is positively correlated with post-training job opportunities in the (local) labour market, when job opportunities are measured by time-varying human capital adjusted national and regionspecific exit rates from unemployment.

Keywords: Causal effects; matching estimators; training unemployed; impact on annual earnings

JEL-codes: C14; J64; J68

53 pages, June 17, 2003

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