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Does the Order and Timing of Active Labour Market Programmes Matter?

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  • Lechner, Michael
  • Wiehler, Stephan

Abstract

This paper extends the traditional focus of active labour market policy evaluation from a static comparison of participation in a programme versus nonparticipation (or participation in another programme) to the evaluation of the effects of programme sequences, i.e. multiple participation or timing of such programmes. We use a dynamic evaluation framework that explicitly allows for dynamic selection into different stages of such sequences based on past intermediate outcomes to analyze multiple programmes, the timing of programmes, and the order of programmes. The analysis is based on exceptionally comprehensive data on the Austrian labour force. Our findings suggest that (i) active job search programmes are more effective after a qualification programme compared to the reverse order, that (ii) multiple participations in qualification measures dominates single participation, and that (iii) the effectiveness of specific labour market programmes deteriorates the later they start during an unemployment spell.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6521.

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Date of creation: Oct 2007
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Handle: RePEc:cpr:ceprdp:6521

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Keywords: Active Labour market policy; matching estimation; panel data; programme evaluation;

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  1. Gerfin, Michael & Lechner, Michael & Steiger, Heidi, 2002. "Does subsidised temporary employment get the unemployed back to work? An econometric analysis of two different schemes," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 A2-2, International Conferences on Panel Data.
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  6. Weber, Andrea & Hofer, Helmut, 2004. "Are Job Search Programs a Promising Tool? A Microeconometric Evaluation for Austria," IZA Discussion Papers 1075, Institute for the Study of Labor (IZA).
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  21. Lechner, Michael, 2009. "Sequential Causal Models for the Evaluation of Labor Market Programs," Journal of Business & Economic Statistics, American Statistical Association, vol. 27, pages 71-83.
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  24. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
  25. Fitzenberger, Bernd & Volter, Robert, 2007. "Long-run effects of training programs for the unemployed in East Germany," Labour Economics, Elsevier, vol. 14(4), pages 730-755, August.
  26. Fitzenberger, Bernd & Speckesser, Stefan, 2005. "Employment effects of the provision of specific professional skills and techniques in Germany," IAB Discussion Paper 200521, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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