Arbeitspapier

Duration dependence versus unobserved heterogeneity in treatment effects: Swedish labor market training and the transition rate to employment

The vocational employment training program is the most expensive training program in Sweden and a cornerstone of labor market policy. We analyze its causal effects on the individual transition rate from unemployment to employment by exploiting variation in the timing of treatment and outcome, dealing with selectivity on unobservables. We demonstrate the appropriateness of this approach in our con-text by studying the enrollment process. We develop a model allowing for duration dependence and unobserved heterogeneity (leading to spurious duration dependence) in the treatment effect itself, and we prove non-parametric identification. The data cover the population and include multiple unemployment spells for many individuals. The results indicate a large significantly positive effect on exit to work shortly after exiting the program. The effect at the individual level diminishes after some weeks. When taking account of the time spent in the program, the effect on the mean unemployment duration is small.

Language
Englisch

Bibliographic citation
Series: Working Paper ; No. 2008:7

Classification
Wirtschaft
Unemployment: Models, Duration, Incidence, and Job Search
Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
Duration Analysis; Optimal Timing Strategies
Semiparametric and Nonparametric Methods: General
Subject
vocational training
program evaluation
duration analysis
selectivity bias
dynamic treatments
active labor market policy
identification
Arbeitsmarktpolitik
Berufsausbildung
Berufsbegleitende Ausbildung
Arbeitslosigkeit
Dauer
Berufliche Integration
Schweden

Event
Geistige Schöpfung
(who)
Richardson, Katarina
van den Berg, Gerard J.
Event
Veröffentlichung
(who)
Institute for Labour Market Policy Evaluation (IFAU)
(where)
Uppsala
(when)
2008

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Richardson, Katarina
  • van den Berg, Gerard J.
  • Institute for Labour Market Policy Evaluation (IFAU)

Time of origin

  • 2008

Other Objects (12)