IDEAS home Printed from https://ideas.repec.org/a/gam/jscscx/v7y2018i4p58-d139790.html
   My bibliography  Save this article

Evaluating the Impact of an Active Labour Market Policy on Employment: Short- and Long-Term Perspectives

Author

Listed:
  • José M. Cansino

    (Department of Economic Analysis and Political Economy, Faculty of Economics and Business Sciences, Universidad de Sevilla, Ramón y Cajal 1, 41018 Seville, Spain
    Universidad Autónoma de Chile, Santiago 758-0150, Chile)

  • Antonio Sánchez-Braza

    (Department of Economic Analysis and Political Economy, Faculty of Economics and Business Sciences, Universidad de Sevilla, Ramón y Cajal 1, 41018 Seville, Spain)

  • Nereyda Espinoza

    (Faculty of Social and Humanistic Sciences, Higher Polytechnic School of the Littoral, Santiago de Guayaquil, Ecuador)

Abstract

The Labour Market Insertion Contract was an Active Labour Market Policy introduced in Spain. It was aimed at individuals who had difficulties entering the labour market, and it was introduced with the purpose of reducing the rate of unemployment. This article provides an estimation of the average impact that this contract had on the employability of individuals in the short and long term. A microeconomic analysis was carried out based on causal statistical inference by using propensity score matching and kernel and radial estimators. Data was taken from the most comprehensive database available, which is the Continuous Sample of Work Histories. Results are consistent with literature reports and show that the employability of participants was inferior to that of individuals with similar, temporary-type contracts. This research contributes to the literature by evaluating whether there was empirical evidence to support the political decision to revoke or replace this kind of direct employment programme.

Suggested Citation

  • José M. Cansino & Antonio Sánchez-Braza & Nereyda Espinoza, 2018. "Evaluating the Impact of an Active Labour Market Policy on Employment: Short- and Long-Term Perspectives," Social Sciences, MDPI, vol. 7(4), pages 1-20, April.
    • Handle: RePEc:gam:jscscx:v:7:y:2018:i:4:p:58-:d:139790
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2076-0760/7/4/58/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2076-0760/7/4/58/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David Card & Jochen Kluve & Andrea Weber, 2010. "Active Labour Market Policy Evaluations: A Meta-Analysis," Economic Journal, Royal Economic Society, vol. 120(548), pages 452-477, November.
    2. Zweimuller, Josef & Winter-Ebmer, Rudolf, 1996. "Manpower Training Programmes and Employment Stability," Economica, London School of Economics and Political Science, vol. 63(249), pages 113-130, February.
    3. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    4. Liliane Bonnal & Denis Fougère & Anne Sérandon, 1997. "Evaluating the Impact of French Employment Policies on Individual Labour Market Histories," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 683-713.
    5. Cansino, José M. & Lopez-Melendo, Jaime & Pablo-Romero, María del P. & Sánchez-Braza, Antonio, 2013. "An economic evaluation of public programs for internationalization: The case of the Diagnostic program in Spain," Evaluation and Program Planning, Elsevier, vol. 41(C), pages 38-46.
    6. Heckman, J.J. & Hotz, V.J., 1988. "Choosing Among Alternative Nonexperimental Methods For Estimating The Impact Of Social Programs: The Case Of Manpower Training," University of Chicago - Economics Research Center 88-12, Chicago - Economics Research Center.
    7. Alberto Abadie & Guido W. Imbens, 2016. "Matching on the Estimated Propensity Score," Econometrica, Econometric Society, vol. 84, pages 781-807, March.
    8. Michael Gerfin & Michael Lechner, 2002. "A Microeconometric Evaluation of the Active Labour Market Policy in Switzerland," Economic Journal, Royal Economic Society, vol. 112(482), pages 854-893, October.
    9. Kosuke Imai, 2005. "Do get-out-the-vote calls reduce turnout? The importance of statistical methods for field experiments," Natural Field Experiments 00272, The Field Experiments Website.
    10. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    11. Kluve, Jochen, 2010. "The effectiveness of European active labor market programs," Labour Economics, Elsevier, vol. 17(6), pages 904-918, December.
    12. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
    13. Kluve, Jochen & Lehmann, Hartmut & Schmidt, Christoph M., 1999. "Active Labor Market Policies in Poland: Human Capital Enhancement, Stigmatization, or Benefit Churning?," Journal of Comparative Economics, Elsevier, vol. 27(1), pages 61-89, March.
    14. Imai, Kosuke, 2005. "Do Get-Out-the-Vote Calls Reduce Turnout? The Importance of Statistical Methods for Field Experiments," American Political Science Review, Cambridge University Press, vol. 99(2), pages 283-300, May.
    15. Jinyong Hahn, 1998. "On the Role of the Propensity Score in Efficient Semiparametric Estimation of Average Treatment Effects," Econometrica, Econometric Society, vol. 66(2), pages 315-332, March.
    16. James J. Heckman & Hidehiko Ichimura & Petra Todd, 1998. "Matching As An Econometric Evaluation Estimator," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 65(2), pages 261-294.
    17. Alberto Abadie & Guido W. Imbens, 2006. "Large Sample Properties of Matching Estimators for Average Treatment Effects," Econometrica, Econometric Society, vol. 74(1), pages 235-267, January.
    18. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. V.I. Rodionova & L.A. Shvachkina & V.A. Ivashova, 2018. "Social Correlation of Professional Educational Services and Labor Market as a Vector of Successful Social and Economic Development," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 285-293.
    2. Beata Bieszk-Stolorz & Krzysztof Dmytrów, 2021. "Impact of Changes to Procedures on the Evaluation of the Effectiveness of Forms of Professional Activation in Poland," Economies, MDPI, vol. 9(2), pages 1-18, June.
    3. Beata Bieszk-Stolorz, 2022. "Impact of Subsidy Programmes on the Development of the Number and Output of RES Micro-Installations in Poland," Energies, MDPI, vol. 15(24), pages 1-14, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cansino, José M. & Lopez-Melendo, Jaime & Pablo-Romero, María del P. & Sánchez-Braza, Antonio, 2013. "An economic evaluation of public programs for internationalization: The case of the Diagnostic program in Spain," Evaluation and Program Planning, Elsevier, vol. 41(C), pages 38-46.
    2. Lechner, Michael & Wunsch, Conny, 2013. "Sensitivity of matching-based program evaluations to the availability of control variables," Labour Economics, Elsevier, vol. 21(C), pages 111-121.
    3. Huber, Martin & Lechner, Michael & Wunsch, Conny, 2013. "The performance of estimators based on the propensity score," Journal of Econometrics, Elsevier, vol. 175(1), pages 1-21.
    4. Dettmann, E. & Becker, C. & Schmeißer, C., 2011. "Distance functions for matching in small samples," Computational Statistics & Data Analysis, Elsevier, vol. 55(5), pages 1942-1960, May.
    5. Flores, Carlos A. & Mitnik, Oscar A., 2009. "Evaluating Nonexperimental Estimators for Multiple Treatments: Evidence from Experimental Data," IZA Discussion Papers 4451, Institute of Labor Economics (IZA).
    6. Sánchez-Braza, Antonio & Pablo-Romero, María del P., 2014. "Evaluation of property tax bonus to promote solar thermal systems in Andalusia (Spain)," Energy Policy, Elsevier, vol. 67(C), pages 832-843.
    7. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    8. Jones A.M & Rice N, 2009. "Econometric Evaluation of Health Policies," Health, Econometrics and Data Group (HEDG) Working Papers 09/09, HEDG, c/o Department of Economics, University of York.
    9. Zeqin Liu & Zongwu Cai & Ying Fang & Ming Lin, 2019. "Statistical Analysis and Evaluation of Macroeconomic Policies: A Selective Review," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 201904, University of Kansas, Department of Economics, revised Mar 2019.
    10. José I. Castillo-Manzano & Antonio Sánchez-Braza, 2011. "An Evaluation of the Establishment of a Taxi Flat Rate from City to Airport: The Case of Seville," Urban Studies, Urban Studies Journal Limited, vol. 48(9), pages 1909-1924, July.
    11. Sant’Anna, Pedro H.C. & Song, Xiaojun, 2019. "Specification tests for the propensity score," Journal of Econometrics, Elsevier, vol. 210(2), pages 379-404.
    12. Huber, Martin & Lechner, Michael & Wunsch, Conny, 2010. "How to Control for Many Covariates? Reliable Estimators Based on the Propensity Score," IZA Discussion Papers 5268, Institute of Labor Economics (IZA).
    13. Tymon Słoczyński, 2015. "The Oaxaca–Blinder Unexplained Component as a Treatment Effects Estimator," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 77(4), pages 588-604, August.
    14. Dettmann, Eva & Becker, Claudia & Schmeißer, Christian, 2010. "Is there a Superior Distance Function for Matching in Small Samples?," IWH Discussion Papers 3/2010, Halle Institute for Economic Research (IWH).
    15. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    16. Manuela Deidda & Adriana Di Liberto & Marta Foddi & Giovanni Sulis, 2015. "Employment subsidies, informal economy and women’s transition into work in a depressed area: evidence from a matching approach," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-25, December.
    17. Jasmin Kantarevic & Boris Kralj, 2013. "Link Between Pay For Performance Incentives And Physician Payment Mechanisms: Evidence From The Diabetes Management Incentive In Ontario," Health Economics, John Wiley & Sons, Ltd., vol. 22(12), pages 1417-1439, December.
    18. Ferraro, Paul J. & Miranda, Juan José, 2014. "The performance of non-experimental designs in the evaluation of environmental programs: A design-replication study using a large-scale randomized experiment as a benchmark," Journal of Economic Behavior & Organization, Elsevier, vol. 107(PA), pages 344-365.
    19. Cansino Muñoz-Repiso, José Manuel & Sánchez Braza, Antonio, 2011. "Effectiveness of Public Training Programs Reducing the Time Needed to Find a Job/Eficacia de los programas públicos de formación en la reducción del tiempo necesario para encontrar un empleo," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 29, pages 391(26á.)-3, Abril.
    20. Advani, Arun & Sloczynski, Tymon, 2013. "Mostly Harmless Simulations? On the Internal Validity of Empirical Monte Carlo Studies," IZA Discussion Papers 7874, Institute of Labor Economics (IZA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jscscx:v:7:y:2018:i:4:p:58-:d:139790. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.