RT Journal Article
SR Electronic
T1 Screening through Activation? Differential Effects of a Youth Activation Program
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 1117-9182R1
DO 10.3368/jhr.57.3.1117-9182R1
A1 Caroline Hall
A1 Kaisa Kotakorpi
A1 Linus Liljeberg
A1 Jukka Pirttilä
YR 2020
UL http://jhr.uwpress.org/content/early/2020/06/05/jhr.57.3.1117-9182R1.abstract
AB We study the dual role of active labor market policies: First, ALMP may perform a screening role by increasing job-search incentives, especially among individuals with good labor market prospects, already before program participation. Second, actual program participation may help individuals with poor labor market prospects. We examine whether this type of pattern can be found in individual responses to a nationwide youth activation program in Sweden using an RD-design. We find that individuals with a high predicted probability of finding work respond to the threat of activation, whereas there is no effect for individuals with weak labor market prospects.