Labour Market Programmes and Labour Market Outcomes: A study of the Swedish Active Labour Market Interventions

This paper assesses the impact of Swedish welfare-to-work programmes on labour market performance including wages, labour market status, unemployment duration and future welfare-to-work participation. We develop a structural dynamic model of labour supply which incorporates detailed institutional features of these policies and allows for selection on observables and unobservables. We estimate the model from a rich administrative panel data set and show that training programmes which account for a large proportion of programmes have little effect on future outcomes, whereas job experience programmes have a beneficial effect. Acknowledgements: This research has benefited from discussions with Eric French, John Ham and Ken Judd and the comments of two referees. We have also benefited