Estimating the Threat Effect of Active Labour Market Programmes

Michael Rosholm and Michael Svarer ()

Economics Working Papers from Department of Economics and Business Economics, Aarhus University

Abstract: We combine two techniques to consistently estimate the effect of active labour market programmes and, in particular, active labour market policy regimes. Our aim is to explicitly estimate the threat effect of active labour market programmes. Based on Danish data (1998-2002) from administrative registers we find a strong and significantly positive threat effect. The threat effect is shown to reduce average unemployment duration by approximately three weeks. The implications of this result are discussed.

Keywords: Active labour market policy; Threat effect; Timing-of-events; Duration model (search for similar items in EconPapers)
JEL-codes: C41 J64 (search for similar items in EconPapers)
Pages: 39
Date: 2004-09-01
New Economics Papers: this item is included in nep-ltv
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Citations: View citations in EconPapers (45)

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Related works:
Working Paper: Estimating the Threat Effect of Active Labour Market Programmes (2004)
Working Paper: Estimating the Threat Effect of Active Labour Market Programmes (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:aah:aarhec:2004-6

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