Active Labour Market Programmes, Job Search and Job Finding in Denmark

This paper investigates whether the probability to search for a job and search intensity increase as the start of an Active Labour Market Programme (ALMP) approaches. Further, it investigates whether job search is correlated with job finding. Although previous studies have shown that the chance of job finding increases as the start of an ALMP approaches, it remains an open question what causes this 'threat effect'. Results show that job search increases as programme start approaches and that there is a positive correlation between job search and job finding. The threat effect can therefore at least partly be attributed to increased job search.