DP5927 The Aggregate Labour Market Effects of the Swedish Knowledge Lift Program

Author(s): James Albrecht, Gerard van den Berg, Susan Vroman
Publication Date: November 2006
Keyword(s): calibration, job search, program evaluation, returns to education, Swedish labour market, unemployment, wages
JEL(s): C31, D83, J21, J24, J31, J64
Programme Areas: Labour Economics
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=5927

The Swedish adult education program known as the Knowledge Lift (1997--2002) was unprecedented in its size and scope, aiming to raise the skill level of large numbers of low-skill workers. This paper evaluates the potential effects of this program on aggregate labour market outcomes. This is done by calibrating an equilibrium search model with heterogeneous worker skills using pre-program data and then forecasting the program impacts. We compare the forecasts to observed aggregate labour market outcomes after termination of the program.