Documents Maibom Pedersen, Jonas 2 results

"Active labour market policies (ALMPs) may play an important role in preventing an increase in long-term unemployment following the Great Recession. We consider this issue for Denmark, a country relying extensively on this instrument. We present evidence on the effectiveness of ALMPs as a way of fighting youth unemployment using results from a randomised controlled trial (RCT) that intensified the use of ALMPs. The intervention was conducted after the onset of the financial crisis, and the findings are relatively unfavourable in the sense that further intensification of an already quite intensive effort for youth did not increase employment. In addition, the intensification of ALMPs seems to have in-creased transitions into sickness benefits."

"Will the current employment crisis produce lost generations with permanently lower labour market attachment? Taking an explicit cohort perspective and based on Danish data we do not find strong persistence in employment rates at the cohort level. Younger workers tend to be more exposed to business cycle fluctuations than older workers, but importantly they recover more quickly from such set-backs than older workers for whom persistence is stronger. Moreover, no cohorts have been disproportionately affected by exposure to a sequence of adverse shocks. An explicit account of overlapping cohorts is shown to affect assessments of persistence in aggregate employment rates."