Suchergebnisse

SummaryWe investigate short‐ and long‐term impacts on labour market outcomes of experiencing a displacement for young workers. The period under study is 2000–2009. The end of the observation period is characterised by a shrinking labour market, coinciding with the start of the financial crisis. The main merit of the study is the inclusion of a wide battery of dependent variables. In general we find sizeable short‐term effect on both unemployment and wage‐employment. Furthermore, the results indicate that displacement has a long‐term negative effect on wage employment. Part of this pattern seems to be masked by an increased likelihood of self‐employment. A positive effect on self‐employment is desirable from a policy perspective. Finally, among those who are employed in the final observation year, we find a small negative effect of displacement on hourly wages. This is solely explained by the foregone work experience of the displaced workers in the years after displacement.

Abstract
Work impairment is an increasing concern in advanced economies, particularly among young people. Activation, rather than passively providing economic support, is often regarded as the preferred strategy for addressing this issue. However, little is known about which measures are effective for improving youth work impairment. A hazard rate competing risk model with unobserved heterogeneity applied to rich Norwegian panel data provides some insights. Wage subsidies, and to some extent education/training programs, have the intended effect. In other words, work-impaired youths who participate in these measures have a higher probability of obtaining work/starting an education and a lower probability of experiencing a transition to social security than those youths who do not participate in any measure. The impacts of follow-up initiatives and work practice programs are more mixed.