Artikel

How to minimize lock-in effects of programs for unemployed workers

Activation programs, such as job search assistance, training, or work experience programs for unemployed workers, typically initially produce negative employment effects. These so-called “lock-in effects” occur because participants spend less time and effort on job search activities than non-participants. Lock-in effects need to be offset by sufficiently large post-participation employment or earnings for the programs to be cost-effective. They represent key indirect costs that are often more important than direct program costs. The right timing and targeting of these programs can improve their cost-effectiveness by reducing lock-in effects.

Language
Englisch

Bibliographic citation
Journal: IZA World of Labor ; ISSN: 2054-9571 ; Year: 2016 ; Bonn: Institute for the Study of Labor (IZA)

Classification
Wirtschaft
Mobility, Unemployment, and Vacancies: Public Policy
Subject
skills-training programs
program evaluation
lock-in effects

Event
Geistige Schöpfung
(who)
Wunsch, Conny
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2016

DOI
doi:10.15185/izawol.288
Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Artikel

Associated

  • Wunsch, Conny
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2016

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