The Effect of Active Labour Market Programmes and Benefit Sanctions on Reducing Unemployment Duration

Nisar Ahmad, Michael Svarer, Amjad Naveed*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)

Abstract

The purpose of this paper is to simultaneously investigate whether the active labour market programmes (ALMPs) and the imposition of benefit sanctions help unemployed insured workers in Denmark to find a job sooner than those who do not get any activation. Earlier studies have modelled ALMPs and benefit sanctions separately, which may have resulted in over- or underestimation of the true effect. As part of our empirical methodology, we used a multivariate mixed proportional hazard model and optimally selected the number of support points for the specification of unobserved heterogeneity distribution in our sample. Our results revealed that the impositions of both benefit sanctions and employment subsidies in the private sector have a positive impact on reducing unemployment duration. Some policy implications are drawn.

Original languageEnglish
Pages (from-to)202-229
Number of pages28
JournalJournal of Labor Research
Volume40
Issue number2
DOIs
Publication statusPublished - Jun 15 2019

Keywords

  • Competing risks
  • MMPH
  • Sanctions
  • Timing-of-events
  • Unemployment insurance

ASJC Scopus subject areas

  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management of Technology and Innovation

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