Differential Effects of Active Labour Market Programmes at the Early Stages of Young People’s Unemployment Differential Effects of Active Labour Market Programmes at the Early Stages of Young People’s Unemployment

This study evaluates the long-run effects of Finnish active labour market programmes in youth labour markets. The effectiveness of programmes is measured by a number of outcomes, including employment, unemployment, programme participation, education, being out-of-labour force and annual earnings. A nonparametric propensity score matching approach adapted for the case of multiple programmes is applied to estimate the average programme effects. Our results point out distinct variation in the success of programmes, and indicate that job placement and labour market training are successful not only in promoting employment but also in increasing the earnings of participants. The largest of all programmes, youth practise, is not found to have any impacts on young persons’ labour market careers.