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Workfare for the old and long-term unemployed
Uppsala University, Units outside the University, Office of Labour Market Policy Evaluation.
Uppsala University, Units outside the University, Office of Labour Market Policy Evaluation. Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
Uppsala University, Units outside the University, Office of Labour Market Policy Evaluation. Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics, Uppsala Center for Fiscal Studies.
2013 (English)In: Labour Economics, ISSN 0927-5371, E-ISSN 1879-1034, Vol. 25, 25-34 p.Article in journal (Refereed) Published
Abstract [en]

We estimate the effects of conditioning benefits on program participation among older long-term unemployed workers. We exploit a Swedish reform which reduced UI duration from 90 to 60 weeks for a group of older unemployed workers in a setting where workers who exhausted their benefits received unchanged transfers if they agreed to participate in a work practice program. Our results show that job finding increased as a result of the shorter duration of passive benefits. The time profile of the job-finding effects suggests that the results are due to deterrence during the program-entry phase. We find no impact on ensuing job durations or wages, suggesting that the increased job-finding rate was driven by increased search intensity rather than lower reservation wages. A crude cost-benefit analysis suggests that the reform reduced the combined cost of programs and transfers.

Place, publisher, year, edition, pages
2013. Vol. 25, 25-34 p.
Keyword [en]
Activation, Program evaluation, UI, Duration
National Category
Social Sciences
Identifiers
URN: urn:nbn:se:uu:diva-213916DOI: 10.1016/j.labeco.2013.04.008ISI: 000327684900003OAI: oai:DiVA.org:uu-213916DiVA: diva2:683712
Available from: 2014-01-06 Created: 2014-01-05 Last updated: 2017-12-06Bibliographically approved

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Bennmarker, HelgeSkans, Oskar NordströmVikman, Ulrika

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