The wage effect of a social experiment on intensified active labor market policies
Author | : Signe Hald Andersen |
Publisher | : |
Total Pages | : 0 |
Release | : 2013 |
ISBN-10 | : 8790199804 |
ISBN-13 | : 9788790199807 |
Rating | : 4/5 (04 Downloads) |
Book excerpt: This study paper investigates the effect of Denmark's intensified 'active labor market policies, ' which is increasing the threat of program participation on post-unemployment wages. For this purpose, the paper examines a social experiment conducted in two Danish counties where approximately 5,000 unemployed people were randomly selected to receive either a standard treatment or an intensified treatment. It uses a Heckman selection model and finds that an intensified threat of program participation increases the probability of finding a job in the short run, but decreases wages in the same period. (Series: The Rockwool Foundation Research Unit - Study Paper - Vol. 49