Transitions to Employment from Labour Market Enterprises in Norway

We analyse a labour market programme for partly disabled workers that involves the transition from Labour Market Enterprises to a job in the ordinary labour market. We find that the percentage of these people finding jobs after a maximum two-year programme period has increased over time. In 1995, 28 per cent became employed in the ordinary job market in that year after they have left the programme. Exit rates to employment increased to 36 per cent in 1998 and to 39 per cent in 1999. We also find heterogeneity in the job transitions. Employment ratios for men are relatively stable over time, varying between 30 and 40 per cent over the period 1995–1999. For women, however, we find a significant change in employment ratios, with 21 per cent finding a job in 1995 and 40 per cent in 1999. In 1995, employment ratios for female participants were below those of male participants, although there was no difference over the whole period studied (1995–1999). In 1999, the average transition rate to employment was higher for female than for male participants.