Employment, mobility, and active labor market programs

Using a unique micro panel data set we investigate whether active labor market programs improve employment prospects and increase mobility in the longer run. We consider two prototype programs: job creation programs and training programs. We find that both programs reduce the chances of finding a job substantially. Moreover, both programs are associated with a locking-in effect: the probability of finding a job outside the home region decreases after program participation. However, this effect appears to stem exclusively from the decrease in the overall job finding rate.

Keywords: Subsidized employment, labor narket training, program
evaluation, employment, contracted mobility.
JEL: J61, J64, J68, C41