Active Labor Market Programs and Regional Mobility of Labor: Evidence from the Swedish Recession, 1994–1995
affiliation not provided to SSRN
Department of Economics, Umeå University
University of Evansville
Contemporary Economic Policy, Vol. 30, Issue 2, pp. 178-194, 2012
This paper addresses the impact of active labor market programs on interregional migration in Sweden. The purpose of the study is to determine the extent to which the programs, which provide training and labor market assistance to jobless individuals, induce participants to migrate. Analysis is based on data registers compiled in 1994 and 1995 by Statistics Sweden and the Labor Market Board of Sweden. The paper specifies and estimates a two‐equation model of participation and subsequent migration. The model, which is estimated by the method of maximum simulated likelihood, accounts for the role of program participation as an endogenous choice variable in the decision to migrate. In an attempt to capture the effect of migrant self‐selection, the estimation approach also controls for unobserved heterogeneity in the participation and migration equations. Results of the study indicate a significant positive impact of participation on subsequent mobility for males. This result is robust with respect to alternative specifications of the migration equation and alternative formulations of the model for program participation. For females, the evidence of program impacts is mixed and it appears to be sensitive to the statistical formulation of the model.
Number of Pages in PDF File: 17
JEL Classification: J38, J61Accepted Paper Series
Date posted: April 19, 2012
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo4 in 0.875 seconds