Scandinavian Working Papers in Economics

Working Paper Series,
Uppsala University, Department of Economics

No 2003:5: Employment, Mobility, and Active Labor Market Programs

Peter Fredriksson () and Per Johansson ()
Additional contact information
Peter Fredriksson: Department of Economics, Postal: Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden
Per Johansson: IFAU, Postal: P.O. Box 513, SE-751 20 Uppsala, Sweden

Abstract: Using a unique micro panel data set we investigate whether active labor market programs improve employment prospects and increase mobility in the longer run. We consider two prototype programs: job creation programs and training programs. We find that both programs reduce the chances of finding a job substantially. Moreover, both programs are associated with a locking-in e.ect: the probability of finding a job outside the home region decreases after program participation. However, this e.ect appears to stem exclusively from the decrease in the overall job finding rate.

Keywords: Subsidized employment; labor market training; program evaluation; employment; contracted mobility

JEL-codes: C41; J61; J64; J68

35 pages, January 24, 2003

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