Direct Displacement Effects of Labour Market Programmes

20 Pages Posted: 29 Dec 2005

See all articles by Matz Dahlberg

Matz Dahlberg

Uppsala University; CESifo (Center for Economic Studies and Ifo Institute)

Anders Forslund

IFAU - Institute for Labour Market Policy Evaluation; Uppsala University

Abstract

Using a panel of 250 Swedish municipalities over the period 1987-1996, we examine the direct displacement effects of active labour market programmes (ALMPs). Compared to earlier studies on this topic, we have more and better data. Based on our GMM estimations, we find that there are direct displacement effects from subsidised employment (in the order of approximately 65%), but that there seem to be no (significant) displacement effects from training. This result seems to be robust to several alternative specifications.

Keywords: Labour market programmes, displacement effects, GMM estimation

JEL Classification: J3

Suggested Citation

Dahlberg, Matz and Forslund, Anders, Direct Displacement Effects of Labour Market Programmes. Scandinavian Journal of Economics, Vol. 107, No. 3, pp. 475-494, September 2005, Available at SSRN: https://ssrn.com/abstract=857808 or http://dx.doi.org/10.1111/j.1467-9442.2005.00419.x

Matz Dahlberg (Contact Author)

Uppsala University ( email )

Box 513
Uppsala, 751 20
Sweden

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Anders Forslund

IFAU - Institute for Labour Market Policy Evaluation ( email )

Box 513
751 20 Uppsala
Sweden
018 471 70 76 (Phone)

Uppsala University ( email )

Uppsala, SE-751 20
Sweden

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