The Aggregate Labor Market Effects of the Swedish Knowledge Lift Program
26 Pages Posted: 1 Nov 2006
Date Written: October 2006
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
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