Screening through Activation? Differential Effects of a Youth Activation Program

Abstract

We study the dual role of active labor market policies: First, ALMP may perform a screening role by increasing job-search incentives, especially among individuals with good labor market prospects, already before program participation. Second, actual program participation may help individuals with poor labor market prospects. We examine whether this type of pattern can be found in individual responses to a nationwide youth activation program in Sweden using an RD-design. We find that individuals with a high predicted probability of finding work respond to the threat of activation, whereas there is no effect for individuals with weak labor market prospects.

France: Social protection for the self-employed

“…However, a somewhat lower share (24%) of this group also had a fully insured first job and a higher share (11%) received unemployment benefit (see Haydn, 2016: 68). 22 To make gross income of people in dependent employment comparable with that of the selfemployed, the figures for those in dependent employment are adjusted by deducting social insurance contributions from gross income (see Rechnungshof 2016, 171). 23 At-risk-of poverty threshold: 60% of the median of the national equivalised per head net household income.…”

“…This is why this idea, while not new, has been gaining popularity in recent years, especially among advocates for workers in new and emerging employment types such as "gig work" and micro-entrepreneurship (e.g. Etsy (2016 [22] )).…”

“…[46] Etsy (2016), Economic Security for the Gig Economy, https://extfiles.etsy.com/advocacy/Etsy_EconomicSecurity_2016.pdf. [22] SSA and ISSA (2018), United States of America, Social Security Administration, https://www.socialsecurity.gov/policy. [14] Tax and Customs Board, Republic of Estonia (2017), "Income declared trough Uber and Taxify has overwhelmingly increased", Press release, https://www.emta.ee/eng/income-declaredthrough-uber-and-taxify-has-overwhelmingly-increased (accessed on 1 July 2018).…”

“…Fixed-term contracts under the intermittents scheme are more flexible than under standard French labour law. 22 While standard temporary contracts may only be extended twice, there is no limit on the number of extensions under the intermittents scheme. There is also no waiting period between two fixed-term contracts, while labour law stipulates a waiting period of at least one-third of the contract duration.…”

“…Finally, higher female labour force participation means that fewer individuals are relying solely on the basic public pension, and more are getting access to collectively bargained pensions (Hagen, 2017 [22] ).…”