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Differential effects of active labour market programs for the unemployed

Authors: Barbara Sianesi
Date: 21 June 2008
Type: Journal Article, Labour Economics, Vol. 15, No. 3, pp 370-499

Abstract

The differential performance of six Swedish active labour market programs for the unemployed is investigated in terms of short- and long-term employment probability and unemployment-benefit dependency. Both relative to one another and compared to more intense job search, the central finding is that the more similar to a regular job, the more effective a program is for its participants. Employment subsidies perform best by far, followed by trainee replacement and, by a long stretch, labour market training. Relief work and two types of work practice schemes appear by contrast to be mainly used to re-qualify for unemployment benefits.

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