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Title:Estimating the Threat Effect of Active Labour Market Programmes PDF Logo
Authors:Rosholm, Michael
Svarer, Michael
Issue Date:2004
Series/Report no.:IZA Discussion paper series 1300
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.
Subjects:active labour market policy
threat effect
timing-of-events
duration model
JEL:C41
J64
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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