The Aggregate Labor Market Effects of the Swedish Knowledge Lift Program

Albrecht, James; van den Berg, Gerard J.; Vroman, Susan

doi:10.2139/ssrn.941128

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The Aggregate Labor Market Effects of the Swedish Knowledge Lift Program

IZA Discussion Paper No. 2385

26 Pages Posted: 1 Nov 2006

See all articles by James Albrecht

James Albrecht

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

Gerard J. van den Berg

University of Groningen; VU University Amsterdam - Department of Economics; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics; Tinbergen Institute

Susan Vroman

Georgetown University; IZA Institute of Labor Economics

Date Written: October 2006

Abstract

The Swedish adult education program known as the Knowledge Lift (1997-2002) was unprecedented in its size and scope, aiming to raise the skill level of large numbers of low-skill workers. This paper evaluates the potential effects of this program on aggregate labor market outcomes. This is done by calibrating an equilibrium search model with heterogeneous worker skills using pre-program data and then forecasting the program impacts. We compare the forecasts to observed aggregate labor market outcomes after termination of the program.

Keywords: job search, returns to education, program evaluation, wages, unemployment, Swedish labor market, calibration

JEL Classification: J21, J64, J31, J24, I21, C31

Suggested Citation: Suggested Citation

Albrecht, James W. and van den Berg, Gerard J. and Vroman, Susan B., The Aggregate Labor Market Effects of the Swedish Knowledge Lift Program (October 2006). IZA Discussion Paper No. 2385, Available at SSRN: https://ssrn.com/abstract=941128 or http://dx.doi.org/10.2139/ssrn.941128