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Active labor market programs and regional mobility of labor: evidence from the Swedish recession 1994 – 1995
Isenberg School of Management, University of Massachusetts, Amherst, MA .
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. (ALC)
Schroeder Family School of Business Administration, University of Evansville, Evansville.
2012 (English)In: Contemporary economic policy, ISSN 1074-3529, E-ISSN 1465-7287, Vol. 30, no 2, 178-194 p.Article in journal (Refereed) Published
Abstract [en]

This paper addresses the impact of active labor market programs on interregional migration in Sweden. The purpose of the study is to determine the extent to which the programs, which provide training and labor market assistance to jobless individuals, induce participants to migrate. Analysis is based on data registers compiled in 1994 and 1995 by Statistics Sweden and the Labor Market Board of Sweden. The paper specifies and estimates a two-equation model of participation and subsequent migration. The model, which is estimated by the method of maximum simulated likelihood, accounts for the role of program participation as an endogenous choice variable in the decision to migrate. In an attempt to capture the effect of migrant self-selection, the estimation approach also controls for unobserved heterogeneity in the participation and migration equations.

Results of the study indicate a significant positive impact of participation on subsequent mobility for males. This result is robust with respect to alternative specifications of the migration equation and alternative formulations of the model for program participation. For females, the evidence of program impacts is mixed and it appears to be sensitive to the statistical formulation of the model.

Place, publisher, year, edition, pages
Wiley-Blackwell, 2012. Vol. 30, no 2, 178-194 p.
Keyword [en]
Migration Labor Market Programs
National Category
Research subject
URN: urn:nbn:se:umu:diva-39536DOI: 10.1111/j.1465-7287.2011.00263.xISI: 000302610500003OAI: diva2:393573
Swedish Research Council
Article first published online: 28 JUN 2011Available from: 2011-01-31 Created: 2011-01-31 Last updated: 2012-05-29Bibliographically approved

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