The Employment Effects of Active Social Policy

46 Pages Posted: 22 Apr 2003

See all articles by Iben Bolvig

Iben Bolvig

Aarhus University - Centre for Research in Social Integration and Marginalization (CIM)

Peter Jensen

Aarhus University; IZA Institute of Labor Economics

Michael Rosholm

Aarhus University - Department of Economics and Business Economics; IZA Institute of Labor Economics; Amternes og Kommunernes Forskningsinstitut (AKF)

Date Written: March 2003

Abstract

We analyse the effects of active social policy (ASP) on the dynamics of welfare dependence. We evaluate the impact of various ASP measures (employment and training) on the duration of welfare spells and subsequent employment spells, based on data from Denmark. The results show that employment measures improve the chances of leaving welfare dependence whereas training measures have detrimental effects on the exit rate from welfare spells. We investigate the optimal timing of ASP and show that there is a case for assigning individuals to early participation in employment programmes, as the net effect is larger the earlier participation begins.

Keywords: Employment Effects, Welfare Dependence, Active Social Policy

JEL Classification: I38, J18, J64, J68

Suggested Citation

Bolvig, Iben and Jensen, Peter and Rosholm, Michael, The Employment Effects of Active Social Policy (March 2003). IZA Discussion Paper No. 736, Available at SSRN: https://ssrn.com/abstract=391995

Iben Bolvig

Aarhus University - Centre for Research in Social Integration and Marginalization (CIM) ( email )

DK-8210 Aarhus V
Denmark
+45 8948 6183 (Phone)
+45 8948 6197 (Fax)

HOME PAGE: http://www.asb.dk/EOK/NAT/STAFF/IBENB_FORM.HTM

Peter Jensen (Contact Author)

Aarhus University ( email )

Department of Economics
Fuglesangs Alle 4
DK-8210 Aarhus V
Denmark
+45 87 16 50 53 (Phone)

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

Michael Rosholm

Aarhus University - Department of Economics and Business Economics ( email )

Fuglesangs Allé 4
Aarhus V
Denmark
+45 89 42 15 59 (Phone)
+45 86 13 63 34 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Amternes og Kommunernes Forskningsinstitut (AKF)

Nyropsgade 37
Copenhagen, DK-1602
Denmark

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