The Impact of Active Labor Market Programs and Benefit Entitlement Rules on the Duration of Unemployment

R. Lalive, J.C. van Ours, J. Zweimüller

Research output: Working paperDiscussion paperOther research output

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Abstract

Swiss policy makers created a unique link between unemployment benefits and active labor market programs (ALMPs) by making benefit payments conditional on program attendance after 7 months of unemployment duration. We evaluate the effect of ALMPs and benefit entitlement on the duration of unemployment in Switzerland. In the evaluation we allow for selectivity affecting the inflow into programs. Our results indicate that (i) after ALMP- participation the transition rate to jobs increases fro Swiss women but not for Swiss men. However, the job hazard rate is strongly reduced during participation. Taken together, this leads to the conclusion that programs prolong unemployment duration for men, but tend to shorten durations for women. (ii) once the unemployment spell approaches the expiration of unconditional benefit entitlement the job-hazard rate increases strongly, both for women and for men. (iii) there are important selectivity effects for Swiss females, but not for Swiss males.
Original languageEnglish
Place of PublicationTilburg
PublisherEconometrics
Number of pages45
Volume2000-41
Publication statusPublished - 2000

Publication series

NameCentER Discussion Paper
Volume2000-41

Fingerprint

Duration of unemployment
Entitlement
Active labour market programmes
Hazard rate
Selectivity
Unemployment
Program participation
Politicians
Participation
Payment
Evaluation
Unemployment duration
Attendance
Switzerland
Unemployment benefits

Keywords

  • active labor market policy
  • benefit entitlement
  • treatment effect
  • bivariate duration model

Cite this

Lalive, R., van Ours, J. C., & Zweimüller, J. (2000). The Impact of Active Labor Market Programs and Benefit Entitlement Rules on the Duration of Unemployment. (CentER Discussion Paper; Vol. 2000-41). Tilburg: Econometrics.
Lalive, R. ; van Ours, J.C. ; Zweimüller, J. / The Impact of Active Labor Market Programs and Benefit Entitlement Rules on the Duration of Unemployment. Tilburg : Econometrics, 2000. (CentER Discussion Paper).
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Lalive, R, van Ours, JC & Zweimüller, J 2000 'The Impact of Active Labor Market Programs and Benefit Entitlement Rules on the Duration of Unemployment' CentER Discussion Paper, vol. 2000-41, Econometrics, Tilburg.

The Impact of Active Labor Market Programs and Benefit Entitlement Rules on the Duration of Unemployment. / Lalive, R.; van Ours, J.C.; Zweimüller, J.

Tilburg : Econometrics, 2000. (CentER Discussion Paper; Vol. 2000-41).

Research output: Working paperDiscussion paperOther research output

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T1 - The Impact of Active Labor Market Programs and Benefit Entitlement Rules on the Duration of Unemployment

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AB - Swiss policy makers created a unique link between unemployment benefits and active labor market programs (ALMPs) by making benefit payments conditional on program attendance after 7 months of unemployment duration. We evaluate the effect of ALMPs and benefit entitlement on the duration of unemployment in Switzerland. In the evaluation we allow for selectivity affecting the inflow into programs. Our results indicate that (i) after ALMP- participation the transition rate to jobs increases fro Swiss women but not for Swiss men. However, the job hazard rate is strongly reduced during participation. Taken together, this leads to the conclusion that programs prolong unemployment duration for men, but tend to shorten durations for women. (ii) once the unemployment spell approaches the expiration of unconditional benefit entitlement the job-hazard rate increases strongly, both for women and for men. (iii) there are important selectivity effects for Swiss females, but not for Swiss males.

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KW - treatment effect

KW - bivariate duration model

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BT - The Impact of Active Labor Market Programs and Benefit Entitlement Rules on the Duration of Unemployment

PB - Econometrics

CY - Tilburg

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Lalive R, van Ours JC, Zweimüller J. The Impact of Active Labor Market Programs and Benefit Entitlement Rules on the Duration of Unemployment. Tilburg: Econometrics. 2000. (CentER Discussion Paper).