Workfare for the old and long-term unemployed
2013 (English)In: Labour Economics, ISSN 0927-5371, Vol. 25, 25-34 p.Article in journal (Refereed) Published
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.
Activation, Program evaluation, UI, Duration
IdentifiersURN: urn:nbn:se:uu:diva-213916DOI: 10.1016/j.labeco.2013.04.008ISI: 000327684900003OAI: oai:DiVA.org:uu-213916DiVA: diva2:683712