Do Labour Market Programmes Speed up the Return to Work?
Røed, Knut and Raaum, Oddbjørn
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.
C41, J24, J64
Unemployment duration, labour market programmes, treatment effects
Project:Oppdragsgiver: Norges forskningsråd
Frisch prosjekt: 1151 - Mobilizing labour force participation