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The relative efficiency of active labour market policies: evidence from a social experiment and non-parametric methods

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Vikström, Johan ; Rosholm, Michael ; Svarer, Michael ; Zimmermann, Klaus F.

Institute of Labor Economics, Bonn

IZA - Bonn

2011

34 p.

activation ; job searching ; labour market policy

Denmark

Discussion Paper Series

5596

Labour market

http://www.iza.org/

English

Bibliogr.

"We re-analyze the effects of a Danish active labour market program social experiment that included a range of sub-treatments, including monitoring, job search assistance and training. Previous studies have shown that the overall effect of the experiment is positive. We apply newly developed non-parametric methods to determine which of the individual policies that explains the positive effect. The use of non-parametric methods to separate sub-treatment effects is important from a methodological point of view, since the alternative, namely parametric/distributional assumptions, is in conflict with the concept of experimental evidence. Our results are highly relevant in a policy perspective, as optimal labour market policy design requires knowledge on the effectiveness of specific policy measures. "

Digital



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