Screening Through Activation: Differential Effects of a Youth Activation Programme

59 Pages Posted: 16 Feb 2017

See all articles by Caroline Hall

Caroline Hall

Uppsala University

Kaisa Kotakorpi

University of Turku - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Linus Liljeberg

IFAU - Institute for Labour Market Policy Evaluation

Jukka Pirttila

United Nations - World Institute for Development Economics Research (UNU/WIDER); Tampere University of Technology

Date Written: January 24, 2017

Abstract

We study the dual role of active labour market policies: First, ALMP may perform a screening role by increasing job-finding rates among individuals with good labour market prospects, already prior to programme participation. Second, actual program participation may help individuals with poor labour market prospects. We demonstrate how these effects arise within a search theoretic framework. Utilizing an RD design, we analyse responses to a nationwide Swedish youth activation program. We find that individuals with a high predicted probability of finding work respond to the threat of activation, whereas there is no effect for individuals with weak labour market prospects.

Keywords: activation, unemployment, regression discontinuity, screening

JEL Classification: J640, J680, I100

Suggested Citation

Hall, Caroline and Kotakorpi, Kaisa and Liljeberg, Linus and Pirttila, Jukka, Screening Through Activation: Differential Effects of a Youth Activation Programme (January 24, 2017). CESifo Working Paper Series No. 6305. Available at SSRN: https://ssrn.com/abstract=2918725

Caroline Hall

Uppsala University

Box 513
Uppsala, 751 20
Sweden

Kaisa Kotakorpi (Contact Author)

University of Turku - Department of Economics ( email )

Turku
Finland

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Linus Liljeberg

IFAU - Institute for Labour Market Policy Evaluation ( email )

Box 513
751 20 Uppsala
Sweden

Jukka Pirttila

United Nations - World Institute for Development Economics Research (UNU/WIDER) ( email )

Katajanokanlaituri 6B
Helsinki, FIN-00160
Finland

Tampere University of Technology ( email )

P.O. 541, Korkeakoulunkatu 8 (Festia building)
Tampere, FI-33101
Finland

Register to save articles to
your library

Register

Paper statistics

Downloads
18
Abstract Views
160
PlumX Metrics