Virtues of SIN – Effects of an immigrant workplace introduction program

1. Virtues of SIN– Effects of an immigrant workplace introduction program Olof Åslund and Per Johansson

2. Outline • Introduction • The SIN program – regulations and methods • Who participates in SIN? • What happens when someone enters SIN? • Methodological considerations • The effects of SIN • Concluding remarks

3. Introduction • SIN = ”workplace introduction for certain immigrants” • Substantial problems of labor market integration • Unemployment • Low-skill jobs for the highly educated • Many political attempts: priority at the PES, local introduction programs, neighborhood development programs etc.

4. The SIN trials • 20 municipalities • Since September 1, 2003 (extended through 2006) • Targeted groups: • Refugees and immigrants age 20 or above • In or having completed local introduction programs • (At risk of becoming) long-term unemployed • Capable of taking a job immediately • SIN ”best alternative available” • SEK 126 million, 4,781 entered in 2005. • Extra funding for special case workers

5. Why interesting? • Identify policies that are effective for disadvantaged groups • Potentially ”new” methodology • Non-standard evaluation problem: SIN may affect many parts of the process • Realistic and challenging evaluation situation • Policy makers need answers – can we provide reliable ones with less than ideal settings?

6. The six steps of SIN - ”supported employment” • Job searcher analysis • Job gathering • Work analysis • Workplace introduction • Follow-up • Employment

7. Previous studies on SIN • Ams (2005) report to the Ministry of Industry: • Generally positive to SIN • Not up and running before fall 2004 • Steps 1-3 most important. • Interviews with participants, officers and employers (Hernemar 2004, Lindgren Åsbrink 2005) • ”Job ready” • Time  good matches • SIN = search and matching assistance(?)

8. The data • IFAU database + SIN information • Entire population 16-65, 1985- • Inflow to unemployment Jan 1, 2000Nov 15, 2005 • Transitions to: Employment, Subsidized employment, Work experience, ”Other” • 20-63 years old at unemployment entry, born outside the Nordic countries • Registered at PES office in SIN local labor market • About 220,000 individuals

9. Where were the SIN participants born?

10. When did the participants come to Sweden?

11. SIN participants vs other unemployed

12. Status 3 days before SIN

13. On the day of SIN entry

14. Implications for the analysis • Cannot compare participants to non-participants • SIN start and end dates ”soft” • Strong selection on unobserved characteristics • Use ”reduced form” analysis at the municipal level • ”SIN” = registered in SIN location in SIN period • DD type of estimator: before-after in treatment and control

15. Is a DD setup appropriate? • Compare to ”imaginary reform” in September 2002

16. Unemployment Employment Work exp. Empl. subsidy Other Potential effects of SIN

17. The outflow from unemployment

18. To employment from IMT:s

19. Robustness checks • Restrict to Asia, Africa and Europe excl. EU15 • High propensity score individuals • Let SIN start on September 1, 2004 • Somewhat stronger results for work experience. • By region of residence • Covariates • Stratification by calendar time and propensity score

20. Comparing the costs and benefits of SIN

21. Concluding remarks • Evaluate the effects of SIN • SIN increased the flow from unemployment to work experience schemes, and the flow from work experience to employment. • Is SIN a new approach to labor market policy? • In theory perhaps, but not in practice • Matching and search assistance: expect positive results?