We are grateful for comments from Karl-Martin Sjöstrand, seminar participants at the Institute for Labour Market Policy Evaluation (IFAU), Umeå University and the Trade Union Institute for Economic Research (FIEF) and two anonymous referees. The usual caveat applies. A research grant from the Swedish Association of Local Authorities enabled us to buy some of the data used in the paper.
Direct Displacement Effects of Labour Market Programmes†
Article first published online: 9 NOV 2005
The Scandinavian Journal of Economics
Volume 107, Issue 3, pages 475–494, September 2005
How to Cite
Dahlberg, M. and Forslund, A. (2005), Direct Displacement Effects of Labour Market Programmes. The Scandinavian Journal of Economics, 107: 475–494. doi: 10.1111/j.1467-9442.2005.00419.x
- Issue published online: 9 NOV 2005
- Article first published online: 9 NOV 2005
- First version submitted February 2001; final version received October 2004.
- Labour market programmes;
- displacement effects;
- GMM estimation
Using a panel of 250 Swedish municipalities over the period 1987–1996, we examine the direct displacement effects of active labour market programmes (ALMPs). Compared to earlier studies on this topic, we have more and better data. Based on our GMM estimations, we find that there are direct displacement effects from subsidised employment (in the order of approximately 65%), but that there seem to be no (significant) displacement effects from training. This result seems to be robust to several alternative specifications.