Do Benefit Cuts Boost Job Finding? Swedish Evidence from the 1990s*

Carling, Kenneth; Holmlund, Bertil; Vejsiu, Altin

doi:10.1111/1468-0297.00659

Cited by 124 publications

(119 citation statements)

References 34 publications

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“…their Figure 3). Carling, Holmlund and Vejsiu (2001) find a significant and large negative UI effect on job finding rates. Ackum Agell, Björklund and Harkman (1995) find that prolonged spells of benefit-program periods are quite common in Sweden, while Hägglund (2000) detects a very interesting sensitivity of employment duration as well as time spent on a program to changes in the UI work requirement.…”

Section: Treatment Effects By Month Of Placement and Work-disincentivmentioning

confidence: 79%

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An evaluation of the Swedish system of active labour market programmes in the 1990s

Sianesi¹

2002

Working Paper Series

170

287

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Abstract:We investigate the presence of short-and long-term effects from joining a Swedish labour market program vis-à-vis more intense job search in open unemployment. Overall, the impact of the program system is found to have been mixed. Joining a program has increased employment rates among participants, a result robust to a misclassification problem in the data. On the other hand it has also allowed participants to remain significantly longer on unemployment benefits and more generally in the unemployment system, this being particularly the case for those entitled individuals entering a program around the time of their unemployment benefits exhaustion.Keywords: Active labour market programs, evaluation, matching, propensity score, treatment effects, unemployment compensation, bounds, missing data. JEL classification: C14, J38, J65, J68.Acknowledgements: Above all I wish to acknowledge the numerous stimulating discussions, comments, suggestions and the continuous guidance and support offered me by my supervisor Costas Meghir. Many thanks to two anonymous referees for their constructive and detailed comments, and to Richard Blundell, Kenneth Carling, Monica Costa Dias, Bernd Fitzenberger, Anders Forslund, Kei Hirano, Hide Ichimura, Astrid Kunze, Laura Larsson, Elena Martinez, Katarina Richardson and Jeff Smith for beneficial discussions and helpful comments, and to seminar participants at IFAU, IFS, Copenhagen University and IZA for useful comments. Erich Battistin and Edwin Leuven should be separately thanked for countless stimulating discussions. Thanks also to Kerstin Johansson for the municipality-level data and to Helge Bennmark and Altin Vejsiu and especially Anders Harkman for helpful institutional information and data issues clarifications. A very special thank to Susanne Ackum Agell for her support and encouragement throughout, as well as for organising financial support through the IFAU. Financial support from the ESRC Centre for the Microeconomic Analysis of Fiscal Policy at the IFS is equally gratefully acknowledged.

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Section: Treatment Effects By Month Of Placement and Work-disincentivmentioning

confidence: 79%

“…We can thus be reasonably confident that most of our individuals are indeed first-time unemployed. 10 Following Carling, Holmlund and Vejsiu (2001) unemployment durations have been slightly adjusted in order to disregard short interruptions of the spells. Two adjacent unemployment spells separated by a short (≤7 days) break 6 4.…”

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confidence: 99%

An evaluation of the Swedish system of active labour market programmes in the 1990s

Sianesi¹

2002

Working Paper Series

170

287

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“…The evidence on this point is mixed. While US and UK studies typically provide benefit elasticity estimates (the elasticity of unemployment duration with respect to the level of the unemployment benefit) ranging from 0.2 to 0.9 (Moffitt, 1985;Narendranathan et al, 1985;Katz and Meyer, 1990;Meyer, 1990;Card and Levine, 1998), European elasticity estimates differ widely, from virtually zero (Hujer and Schneider, 1989;Groot, 1990;van den Berg, 1990;Steiner, 1990;Hernaes and Strøm, 1996) to above unity (Abbring et al, 1998;Carling et al (1999).…”

Section: Introductionmentioning

confidence: 99%

Temporary layoffs and the duration of unemployment

Røed¹,

Nordberg²

2003

Labour Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractWe use Norwegian micro-data to identify the driving forces behind unemployment spells following temporary-and permanent dismissals. The duration of unemployment spells for permanently dismissed workers is primarily explained by individual resources and economic incentives, while spell-duration for temporary dismissed workers is explained by firm incentives. Higher benefits reduce the employment hazard for permanently-but i ncrease it for temporary dismissed workers. Structural duration dependence is nonparametrically identified and sharply estimated with the aid of lagged hazard rate variation and repeated spells. The employment hazards for both spell-types exhibit positive duration dependence during the first months and negative duration dependence thereafter.

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“…Coefficient estimates and significance levels vary slightly with the length of the response period, but the main results reported in this subsection remain virtually unchanged. 21 Using data from the mid-1990s, Carling et al (1999) found a similar pattern in a study of how job-finding rates were affected by a reduction in replacement rates. In other studies using data from the early 1990s, e.g.…”

Section: The Employment Equationmentioning

confidence: 79%

An Evaluation of the Swedish Trainee Replacement Schemes

Sacklén

2002

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may An evaluation of the Swedish trainee replacement schemesHans Sacklén An evaluation of the Swedish trainee replacement schemesHans Sacklén* ABSTRACT This paper estimates the employment effects of the Swedish trainee replacement schemes (an active labour market program that was in operation during the 1990s). The empirical analysis exploits a large and rich administrative data set, and we control for observed and unobserved selection bias by using a multiple equation model and the maximum likelihood estimation method. The estimation results point at a selection of participants having a high ex ante probability of employment. In addition, the results suggest that participation in replacement schemes increased the re-employment probability by 5 to 10 percentage points.

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Do Benefit Cuts Boost Job Finding? Swedish Evidence from the 1990s*

Cited by 124 publications

References 34 publications

An evaluation of the Swedish system of active labour market programmes in the 1990s

An evaluation of the Swedish system of active labour market programmes in the 1990s

Temporary layoffs and the duration of unemployment

An Evaluation of the Swedish Trainee Replacement Schemes

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