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Book Synopsis
This paper investigates the effect of intensified ALMPs, by increasing the threat of program participation, on post-unemployment wages. For this purpose, it exploits a social experiment conducted in two Danish counties, where approximately 5,000 unemployed people were randomly selected to receive either a standard treatment or an intensified treatment. It uses a Heckman selection model and finds that an intensified threat of program participation increases the probability of finding a job in the short run, but decreases wages in the same period.

Wage Effect of a Social Experiment on Intensified

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    A Paperback / softback by Signe Hald Andersen

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      Book details

      Published 1 May 2013
      ISBN-13 9788790199807
      978-8790199807
      ISBN-10 8790199804

      Description

      Book Synopsis
      This paper investigates the effect of intensified ALMPs, by increasing the threat of program participation, on post-unemployment wages. For this purpose, it exploits a social experiment conducted in two Danish counties, where approximately 5,000 unemployed people were randomly selected to receive either a standard treatment or an intensified treatment. It uses a Heckman selection model and finds that an intensified threat of program participation increases the probability of finding a job in the short run, but decreases wages in the same period.

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