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Employment subsidies - A fast lane from unemployment to work?

Author: Anders Forslund, And Per Johansson, And Linus Liljeberg, And

Summary of Working paper 2004:18

The treatment effect of a Swedish employment subsidy is estimated
using exact covariate-matching and instrumental variables
methods. Our estimates suggest that the programme had a positive
treatment effect for the participants.
We also show how non-parametric methods can be used to estimate
the time profile of treatment effects as well as how to estimate
the effect of entering the programme at different points in time in
the unemployment spell.
Our main results are derived using matching methods. However,
as a sensitivity test, we apply instrumental variables difference-indifference
methods. These estimates indicate that our matching results
are robust.
JEL Classification: C14, C41, J23, J38, J68
Key words: Evaluation, employment subsidies, exact covariatematching

The treatment effect of a Swedish employment subsidy is estimated using exact covariate-matching and instrumental variables methods. Our estimates suggest that the programme had a positive treatment effect for the participants.

We also show how non-parametric methods can be used to estimate the time profile of treatment effects as well as how to estimate the effect of entering the programme at different points in time in  the unemployment spell.

Our main results are derived using matching methods. However, as a sensitivity test, we apply instrumental variables difference-in-difference methods. These estimates indicate that our matching resultsare robust.

Key words: Evaluation, employment subsidies, exact covariatematching
JEL Classification: C14, C41, J23, J38, J68

Research areas