The Motivation Effect of Active Labor Market Policy on Wages
Written by: Lars Pico Geerdsen and Torben Tranæs
This study investigates the significance of the motivation effect on employment and wages resulting from activation programmes. It is based on a reform to the Danish unemployment benefit system introduced in 1998 which reduced the length of the period of passive receipt of benefits.
Related publications
Knowledge overview
Activation programmes for the unemployed reduce inequality
Go to knowledge overview
Research report
The Wage Effect of a Social Experiment on Intensified Active Labor Market Policies
Go to research report
Research report
How scary is it? – Review of literature on the threat effect of active labor market programs
Go to research report
Research report
Labour Market Programmes and the Equity-Efficiency Trade-Off
Go to research reportLatest releases on the same welfare topic
Comment
“DA’s figures on long-term benefits do not capture the full picture”
February 2026
Comment
Inevitable artificial intelligence hallucinations may lead citizens astray
February 2026
Comment
Kaare Dybvad Bek does not convincingly demonstrate that we are at risk of repeating the mistakes of the past
January 2026
Comment
The employment reform has a fundamental problem: it intervenes too late
January 2026