Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/78632 
Year of Publication: 
2008
Series/Report no.: 
Working Paper No. 2008:1
Publisher: 
Institute for Labour Market Policy Evaluation (IFAU), Uppsala
Abstract: 
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. Our calibrations suggest that the equilibrium treatment effects were positive - wages are predicted to increase, as are the employment rates of the treated. The equilibrium effects magnify the partial effects by a factor 1.5 to 2. This is due to the increase in demand for skills that is triggered by the increase in its supply.
Subjects: 
Job search
policy evaluation
wages
unemployment
Swedish labor market
calibration
adult education
equilibrium effects
JEL: 
I21
Document Type: 
Working Paper

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