Scandinavian Working Papers in Economics
Memorandum,
Oslo University, Department of Economics
No 13/2003: The Effect of Programme Participation on the Transition Rate from Unemployment to Employment
Knut Røed () and Oddbjørn Raaum ()
Additional contact information
Knut Røed: Ragnar Frisch Centre for Economic Research, Postal: Frisch Centre, Gaustadalléen 21, N-0349 Oslo, Norway. , Tel: +47-22958810 , Fax: +47-22958825 , http://www.frisch.uio.no/main_eng.html
Oddbjørn Raaum: Ragnar Frisch Centre for Economic Research, Postal: Frisch Centre, Gaustadalléen 21, N-0349 Oslo, Norway. , Tel: +47-22958810 , Fax: +47-22958825 , http://www.frisch.uio.no/main_eng.html
Abstract: We use Norwegian register data from 1989 to 2002 to estimate the causal effects of programme participation on the transition rate from unemployment to employment,by means of a dependent risks hazard rate model. The separate roles of causality and unobserved heterogeneity are non-parametrically identified on the basis of variation in ‘lagged’ explanatory variables. Active labour market programmes tend to reduce the transition rate to ordinary work during the participation period, and increase it afterwards. The average net effect on total unemployment duration for the treated is around zero. There are favourable net effects for adults with poor employment prospects.
Keywords: Unemployment duration; labour market programmes; treatment effects
42 pages, April 23, 2003
Full text files
Memo-13-2003.pdf
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