Screening through Activation? : Differential Effects of a Youth Activation Program

• We study the dual role of active labor market policies. First, active labor market programs (ALMPs) may perform a screening role by increasing job-search incentives already before program participation, especially among individuals with good labor market prospects. 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 a regression discontinuity (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.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

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