Who are the lucky ones? Heterogeneity in active labour market policy outcomes

Abstract

Nordlund M. Who are the lucky ones? Heterogeneity in active labour market policy outcomes Int J Soc Welfare 2011: 20: 144–155 © 2010 The Author(s), International Journal of Social Welfare © 2010 Blackwell Publishing Ltd and International Journal of Social Welfare. This study focuses on how the effects from investments in Active Labour Market Policy programmes (ALMPs) may be differently distributed due to the age and educational level of participants. Outcomes were measured as the chance of labour market inclusion, labour market stability and post-unemployment incomes. This longitudinal study captures long-term effects among 50,000 Swedes who entered unemployment in 1993. While the youngest gained most from ALMP-training, the oldest were best helped by ALMP- employment in reducing the risk of labour market exit. The lowest educated gained much from ALMP participation, although the effects were weaker than expected: those with a higher education gained more in terms of labour market stability from ALMP-training compared with the less educated persons. This result was interpreted in terms of a springboard effect, meaning that ALMP-training pushes higher educated people into further education in the regular educational arena.