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- Title
COMPULSION IN ACTIVE LABOUR MARKET PROGRAMMES.
- Authors
Van Ours, Jan C.
- Abstract
This paper examines compulsion in active labour market programmes (ALMP). When an unemployed worker has to participate in a programme in order to remain eligible for benefits there are two separate effects. First, there is the treatment effect, i.e. the programme makes the worker more attractive for a potential employer or makes search more efficient, thus helping the unemployed worker to find a job more quickly. Second, there is the compulsion effect, i.e. because the worker has to attend the programme his value of being unemployed drops and he is stimulated to find a job more quickly. So, both effects induce the worker to find a job more quickly. The difference between the treatment effect and the compulsion effect concerns the quality of the post-unemployment job. The treatment effect improves the quality; the compulsion effect lowers the quality of post-unemployment jobs.
- Subjects
UNEMPLOYMENT; INCOME maintenance programs; EMPLOYMENT; UNEMPLOYED people; LABOR policy; JOB vacancies; UNEMPLOYMENT insurance; LABOR
- Publication
National Institute Economic Review, 2007, Vol 202, p67
- ISSN
0027-9501
- Publication type
Article
- DOI
10.1177/0027950107086169