Table 8: Labor market outcomes, by cohorts and initial conditions 2 and 4 years after start.

||(1)<br>(2)|(3)<br>(4)|(5)|(6)|(7)|(8)|
|---|---|---|---|---|---|---|
|Variable|He<br>Empl|ad<br>oyed||Spo<br>Empl|use<br>oyed||
|Years after start|2|4|2|||4|
|Cohort|2002-2004<br>2005-2006|2002-2004<br>2005-2006|2002-2004|2005-2006|2002-2004|2005-2006|
|||Panel A: A|ll sample||||
|Eligibility (ITT)|0.008<br>0.014|-0.004<br>0.016|-0.004|0.037|0.002|0.040|
||(0.007)<br>(0.011)|(0.008)<br>(0.013)|(0.006)|(0.017)|(0.011)|(0.022)|
|Participation (IV)|0.046<br>0.061|-0.026<br>0.077|-0.022|0.166|0.010|0.180|
||(0.039)<br>(0.048)|(0.051)<br>(0.061)|(0.034)|(0.079)|(0.064)|(0.097)|
|Control Mean|0.720<br>0.709|0.737<br>0.707|0.119|0.277|0.242|0.273|
|P-Value: HA:β<sup>_iv_</sup><br>0506 <sup>_>_ β</sup><sup>_iv_</sup><br>0204|0.408|0.100|0.0|16|0.|068|
|||Panel B: Not empl|oyed before 20|02|||
|Eligibility (ITT)|0.006<br>-0.026|-0.011<br>-0.005|-0.004|0.044**|0.002|0.045|
||(0.015)<br>(0.028)|(0.017)<br>(0.033)|(0.006)|(0.019)|(0.011)|(0.023)|
|Participation (IV)|0.039<br>-0.127|-0.080<br>-0.025|-0.021|0.198**|0.009|0.198|
||(0.086)<br>(0.136)|(0.119)<br>(0.157)|(0.032)|(0.084)|(0.061)|(0.099)|
|Control Mean|0.225<br>0.296|0.300<br>0.306|0.0875|0.236|0.202|0.236|
|P-Value: HA:β<sup>_iv_</sup><br>0506 <sup>_>_ β</sup><sup>_iv_</sup><br>0204|0.836|0.376|0.0|20|0.|060|
|||Panel C: Emplo|yed before 2002||||
|Eligibility (ITT)|0.002<br>0.013|-0.010<br>0.015|0.007|-0.004|0.008|0.006|
||(0.006)<br>(0.011)|(0.007)<br>(0.015)|(0.028)|(0.057)|(0.037)|(0.066)|
|Participation (IV)|0.009<br>0.058|-0.065<br>0.071|0.044|-0.023|0.074|0.032|
||(0.036)<br>(0.048)|(0.046)<br>(0.069)|(0.173)|(0.272)|(0.323)|(0.318)|
|Control Mean|0.863<br>0.808|0.839<br>0.799|0.379|0.506|0.513|0.488|
|P-Value: HA:β<sup>_iv_</sup><br>0506 <sup>_>_ β</sup><sup>_iv_</sup><br>0204|0.208|0.060|0.5|56|0.|552|
|P-Value: HA:β<sup>_iv_</sup><br>0 <sup>_>_ β</sup><sup>_iv_</sup><br>1|0.400<br>0.920|0.580<br>0.724|0.628|0.208|0.564|0.296|

Note: See table 3 for a description of specification used in rows (ITT) and table 4 for rows (IV). The coefficient estimate in rows (ITT) is the indicator of eligibility, _Eim_ , and the coefficient estimate in rows (IV) is the indicator of participation in CS, _CSim_ . The p-value in the table concerns the null hypothesis that the effect for those that entered in CS in the years of 2005-2006 equals the effect of those that entered between 200-2004, H0: β<sup>_iv_</sup> 0506<sup>= β</sup><sup>_iv_</sup> 0204<sup>,againstthealternativethattheeffectislargerforthoseenteringinthelater</sup> year, HA: β<sup>_iv_</sup> 0506<sup>_>_β</sup><sup>_iv_</sup> 0204<sup>.The last row presents the p-value for the null hypothesis that the effect for those</sup> not employed prior 2002 equals the effect on those employed, H0: β<sup>_iv_</sup> 0<sup>= β</sup> 1<sup>_iv_, against the alternative that the</sup> effect is larger for those not employed prior to 2002, HA: β<sup>_iv_</sup> 0<sup>_>_β</sup><sup>_iv_</sup> 1<sup>.Robuststandarderrorsarereported</sup> in parenthesis clustered at municipality of residence when eligibility is evaluated. * significant at 10%; ** significant at 5%; *** significant at 1% (the critical values for inference are adjusted for multiple hypotheses testing).

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