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Targeting Labour Market Programmes - Results from a Randomized Experiment

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  • Stefanie Behncke
  • Markus Frölich
  • Michael Lechner

Abstract

We evaluate a randomized experiment of a statistical support system developed to assist caseworkers in Swiss employment offices in choosing appropriate active labour market programmes for their unemployed clients. The support system was piloted in several employment offices in which, randomly, half of the caseworkers used the system and the other half acted as control group. Caseworkers retained full discretion about the choice of active labour market programmes, and the evaluation results showed that caseworkers largely did not follow the statistical support system. This indicates that stronger incentives are needed for caseworkers to comply with statistical profiling and targeting systems.

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Bibliographic Info

Article provided by Swiss Society of Economics and Statistics (SSES) in its journal Swiss Journal of Economics and Statistics.

Volume (Year): 145 (2009)
Issue (Month): III (September)
Pages: 221-268

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Handle: RePEc:ses:arsjes:2009-iii-1

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Keywords: Profiling; active labour market programmes; ALMP; statistical treatment rules; unemployment; public employment services;

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References

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  1. Dehejia, Rajeev H., 2005. "Program evaluation as a decision problem," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 141-173.
  2. Frölich, Markus & Lechner, Michael & Steiger, Heidi, 2003. "Statistically assisted programme selection - International experiences and potential benefits for Switzerland," Working Paper Series 2004:1, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  3. Christopher J. O'Leary & Paul T. Decker & Stephen A. Wandner, 2003. "Cost-Effectiveness of Targeted Reemployment Bonuses," Upjohn Working Papers and Journal Articles 03-51, W.E. Upjohn Institute for Employment Research.
  4. Markus Frölich, 2006. "Statistical Treatment Choice: An Application to Active Labour Market Programmes," University of St. Gallen Department of Economics working paper series 2006 2006-14, Department of Economics, University of St. Gallen.
  5. Mark C. Berger & Dan Black & Jeffrey Smith, 2000. "Evaluating Profiling as a Means of Allocating Government Services," UWO Department of Economics Working Papers 200018, University of Western Ontario, Department of Economics.
  6. Robert Moffitt, 2006. "Welfare Work Requirements with Paternalistic Government Preferences," NBER Working Papers 12366, National Bureau of Economic Research, Inc.
  7. Michael Lechner & Jeffrey Smith, 2003. "What is the Value Added by Caseworkers?," University of St. Gallen Department of Economics working paper series 2003 2003-05, Department of Economics, University of St. Gallen.
  8. Lalive, Rafael & van Ours, Jan C & Zweimüller, Josef, 2002. "The Effect of Benefit Sanctions on the Duration of Unemployment," CEPR Discussion Papers 3311, C.E.P.R. Discussion Papers.
  9. Randall W. Eberts & Christopher J. O'Leary, 2002. "A Frontline Decision Support System for Georgia Career Centers," Upjohn Working Papers and Journal Articles 02-84, W.E. Upjohn Institute for Employment Research.
  10. Charles F. Manski, 2006. "Search Profiling With Partial Knowledge of Deterrence," Economic Journal, Royal Economic Society, vol. 116(515), pages F385-F401, November.
  11. Bell, Stephen H. & Orr, Larry L., 2002. "Screening (and creaming?) applicants to job training programs: the AFDC homemaker-home health aide demonstrations," Labour Economics, Elsevier, vol. 9(2), pages 279-301, April.
  12. Nicola Persico & Petra Todd, 2006. "Generalising the Hit Rates Test for Racial Bias in Law Enforcement, With an Application to Vehicle Searches in Wichita," Economic Journal, Royal Economic Society, vol. 116(515), pages F351-F367, November.
  13. Dan A. Black & Jeffrey A. Smith & Mark C. Berger & Brett J. Noel, 2003. "Is the Threat of Reemployment Services More Effective Than the Services Themselves? Evidence from Random Assignment in the UI System," American Economic Review, American Economic Association, vol. 93(4), pages 1313-1327, September.
  14. Fredriksson, Peter & Johansson, Per, 2002. "Program Evaluation and Random Program Starts," Working Paper Series 2003:1, Uppsala University, Department of Economics.
  15. Manski, Charles F., 2000. "Identification problems and decisions under ambiguity: Empirical analysis of treatment response and normative analysis of treatment choice," Journal of Econometrics, Elsevier, vol. 95(2), pages 415-442, April.
  16. Arulampalam, W. & Robin A. Naylor & Jeremy P. Smith, 2002. "University of Warwick," Royal Economic Society Annual Conference 2002 9, Royal Economic Society.
  17. Christopher J. O'Leary & Paul Decker & Stephen A. Wandner, 2002. "Targeting Reemployment Bonuses," Mathematica Policy Research Reports 3005, Mathematica Policy Research.
  18. Michael Rosholm & Jonas Staghøj & Michael Svarer, 2007. "A Statistical Programme Assignment Model," Economics Working Papers 2007-16, School of Economics and Management, University of Aarhus.
  19. Nicola Persico & Petra E. Todd, 2005. "Passenger Profiling, Imperfect Screening, and Airport Security," American Economic Review, American Economic Association, vol. 95(2), pages 127-131, May.
  20. William C. Horrace & Peter Schmidt, 2000. "Multiple comparisons with the best, with economic applications," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(1), pages 1-26.
  21. Charles Manski, 2003. "Statistical treatment rules for heterogeneous populations," CeMMAP working papers CWP03/03, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  22. Alex Bryson & Diana Kasparova, 2003. "Profiling benefit claimants in Britain: a feasibility study," LSE Research Online Documents on Economics 4991, London School of Economics and Political Science, LSE Library.
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Citations

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Cited by:
  1. Michael Rosholm & Jonas Staghøj & Michael Svarer, 2007. "A Statistical Programme Assignment Model," Economics Working Papers 2007-16, School of Economics and Management, University of Aarhus.
  2. Oscar Mitnik, 2008. "How do Training Programs Assign Participants to Training? Characterizing the Assignment Rules of Government Agencies for Welfare-to-Work Programs in California," Working Papers 0907, University of Miami, Department of Economics.
  3. Weber, Andrea, 2008. "Individual Incentives in Program Participation: Splitting up the Process in Assignment and Enrollment," IZA Discussion Papers 3404, Institute for the Study of Labor (IZA).
  4. Pierre Koning, 2009. "The effectiveness of Public Employment Service workers in the Netherlands," Empirical Economics, Springer, vol. 37(2), pages 393-409, October.
  5. Djebbari, Habiba & Smith, Jeffrey, 2008. "Heterogeneous impacts in PROGRESA," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 64-80, July.
  6. Philip J. O’Connell & Seamus Mcguinness & Elish Kelly, 2012. "The Transition from Short- to Long-Term Unemployment: A Statistical Profiling Model for Ireland," The Economic and Social Review, Economic and Social Studies, vol. 43(1), pages 135–164.
  7. Luis Ayala & Magdalena Rodríguez, 2010. "Evaluating welfare reform under program heterogeneity and alternative measures of success," Working Papers 186, ECINEQ, Society for the Study of Economic Inequality.

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