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A reappraisal of the virtues of private sector employment programmes

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  • Department of Economics
  • Centre for Research in Integration, Education, Qualifications and Marginalization (CIM)
This paper evaluates the employment effects of active labour market programmes for Danish
welfare benefit recipients, focusing on private sector employment (PSE) programmes. Using
a latent variable model that allows for heterogeneous treatment effects among observationally
identical persons, we estimate commonly defined mean treatment effects and the distribution
of treatment effects. We find no significant mean treatment effect of PSE programme participation
as compared to participation in other programmes for PSE programme participants.
However, we find substantial heterogeneity in the treatment effects, and those most likely to
participate in PSE programmes are those who benefit the least from such programmes.
Original languageEnglish
JournalThe Scandinavian Journal of Economics
Pages (from-to)546-569
Number of pages24
Publication statusPublished - 2010

    Research areas

  • Heterogeneous treatment effects, Active labour market programmes, Welfare dependence, Employment

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