Costs and benefits of Danish active labour market programmes

Svend Jespersen; Jakob Roland Munch; Lars Skipper

doi:10.1016/j.labeco.2007.07.005

Costs and benefits of Danish active labour market programmes

Svend Jespersen, Jakob Roland Munch, Lars Skipper

Department of Economics

43 Citations (Scopus)

Abstract

Since 1994, unemployed workers in the Danish labour market have participated in active labour market programmes on a large scale. This paper contributes with an assessment of costs and benefits of these programmes. Long-term treatment effects are estimated on a very detailed administrative dataset by propensity score matching. For the years 1995 - 2005 it is found that private job training programmes have substantial positive employment and earnings effects, but also public job training ends up with positive earnings effects. Classroom training does not significantly improve employment or earnings prospects in the long run. When the cost side is taken into account, private and public job training still come out with surplusses, while classroom training leads to a deficit.

Original language	English
Journal	Labour Economics
Volume	15
Issue number	5
Pages (from-to)	859-884
Number of pages	26
ISSN	0927-5371
DOIs	https://doi.org/10.1016/j.labeco.2007.07.005
Publication status	Published - 2008

Keywords

Faculty of Social Sciences
cost-benefit analysis
propensity score matching

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10.1016/j.labeco.2007.07.005

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title = "Costs and benefits of Danish active labour market programmes",

abstract = "Since 1994, unemployed workers in the Danish labour market have participated in active labour market programmes on a large scale. This paper contributes with an assessment of costs and benefits of these programmes. Long-term treatment effects are estimated on a very detailed administrative dataset by propensity score matching. For the years 1995 - 2005 it is found that private job training programmes have substantial positive employment and earnings effects, but also public job training ends up with positive earnings effects. Classroom training does not significantly improve employment or earnings prospects in the long run. When the cost side is taken into account, private and public job training still come out with surplusses, while classroom training leads to a deficit.",

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AU - Munch, Jakob Roland

AU - Skipper, Lars

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PY - 2008

Y1 - 2008

N2 - Since 1994, unemployed workers in the Danish labour market have participated in active labour market programmes on a large scale. This paper contributes with an assessment of costs and benefits of these programmes. Long-term treatment effects are estimated on a very detailed administrative dataset by propensity score matching. For the years 1995 - 2005 it is found that private job training programmes have substantial positive employment and earnings effects, but also public job training ends up with positive earnings effects. Classroom training does not significantly improve employment or earnings prospects in the long run. When the cost side is taken into account, private and public job training still come out with surplusses, while classroom training leads to a deficit.

AB - Since 1994, unemployed workers in the Danish labour market have participated in active labour market programmes on a large scale. This paper contributes with an assessment of costs and benefits of these programmes. Long-term treatment effects are estimated on a very detailed administrative dataset by propensity score matching. For the years 1995 - 2005 it is found that private job training programmes have substantial positive employment and earnings effects, but also public job training ends up with positive earnings effects. Classroom training does not significantly improve employment or earnings prospects in the long run. When the cost side is taken into account, private and public job training still come out with surplusses, while classroom training leads to a deficit.

KW - Faculty of Social Sciences

KW - cost-benefit analysis

KW - propensity score matching

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DO - 10.1016/j.labeco.2007.07.005

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VL - 15

SP - 859

EP - 884

JO - Labour Economics

JF - Labour Economics

IS - 5

ER -

Costs and benefits of Danish active labour market programmes

Abstract

Keywords

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