Employment effects of active labor market programs for sick-listed workers.
We use register data of 88,948 sick-listed workers in Denmark over the period 2008-2011 to investigate the effect of active labor market programs on the duration until returning to non-subsidized employment and the duration of this employment. To identify causal treatment effects, we exploit over-time variation in the use of active labor market programs in 98 job centers and time-to- event. We find that ordinary education and subsidized job training have significant positive employment effects. Subsidized job training has a large, positive effect on the transition into employment but no effect on the subsequent employment duration. In contrast, ordinary education has a positive effect on employment duration but no effect on the transition into employment. The latter effect is the result of two opposing effects, a large positive effect of having completed education and a large negative lock-in effect, with low re-employment chances during program participation.
Department of Sociology, Western University, London, Ontario, N6A 5C2, Canada; Department of Economics, Western University, London, Ontario, N6A 5C2, Canada. Electronic address: aholm@uwo.ca.
Anders
A
Holm
The Danish Working Environment Authority, Landskronagade 33, DK-2100 Copenhagen Ø, Denmark.
Jan
J
Høgelund
University of Copenhagen, Department of Economics, Øster Farimagsgade 5, DK-1353 Copenhagen K, Denmark.
Mette
M
Gørtz
Marselisborg - Development, Competence, Knowledge, Robert Jacobsens vej 76A, DK-2300 Copenhagen S, Denmark.
Kristin Storck
KS
Rasmussen
The Danish Working Environment Authority, Landskronagade 33, DK-2100 Copenhagen Ø, Denmark.
Helle Sofie Bøje
HS
Houlberg
D000328:Adult; D003718:Denmark; D004651:Employment / Q000706:statistics & numerical data; D005260:Female; D006801:Humans; D008297:Male; D011632:Public Assistance; D012050:Rehabilitation, Vocational / Q000379:methods; D062707:Return to Work / Q000706:statistics & numerical data; D018582:Sick Leave / Q000706:statistics & numerical data; D014829:Vocational Education / Q000379:methods
Active labor market programs; Effect evaluation; Employment; Hazard rate model; Return to work; Sick leave