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Norwegian

Do Labour Market Programmes Speed up the Return to Work?

Authors:

Røed, Knut and Raaum, Oddbjørn

Year:

2006

Reference:

Oxford Bulletin of Economics & Statistics

68, 5, 541-68

Summary

We evaluate the impact of Labour Market Programmes on unemployment durations in Norway, by means of a distribution-free mixed proportional competing risks hazard rate model. We find that programme participation, once completed, improves em-ployment prospects, but that there is often an opportunity cost in the form of a lock-in effect during participation. The average net effect of programme participation on the length of the job search period is found to be around zero. For participants with poor employment prospects, the favourable post-programme effects outweigh the negative lock-in effects.

JEL:

C41, J24, J64

Keywords:

Unemployment duration, labour market programmes, treatment effects

Project:

Oppdragsgiver: Norges forskningsråd
Oppdragsgivers prosjektnr.:
Frisch prosjekt: 1151 - Mobilizing labour force participation

Contact:

knut.roed@frisch.uio.no

Financing:

Norges Forskningsråd