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

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Author Info
Lechner, Michael
Wiehler, Stephan

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

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Find related papers by JEL classification:
J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy

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  1. Kluve, Jochen & Lehmann, Hartmut & Schmidt, Christoph M., 1999. "Active Labor Market Policies in Poland: Human Capital Enhancement, Stigmatization or Benefit Churning," IZA Discussion Papers 30, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Bernd Fitzenberger & Robert Völter, 2007. "Long-Run Effects of Training Programs for the Unemployed in East Germany," IZA Discussion Papers 2630, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Michael Lechner & Stephan Wiehler, 2007. "Kids or Courses? Gender Differences in the Effects of Active Labor Market Policies," University of St. Gallen Department of Economics working paper series 2007 2007-08, Department of Economics, University of St. Gallen. [Downloadable!]
    Other versions:
  4. Annette Bergemann & Gerard J. van den Berg, 2006. "Active Labor Market Policy Effects for Women in Europe: A Survey," IZA Discussion Papers 2365, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. Fitzenberger, Bernd & Speckesser, Stefan, 2005. "Employment Effects of the Provision of Specific Professional Skills and Techniques in Germany," ZEW Discussion Papers 05-77, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  6. Lechner, Michael & Melly, Blaise, 2007. "Earnings Effects of Training Programs," CEPR Discussion Papers 6400, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  7. Zweimuller, Josef & Winter-Ebmer, Rudolf, 1996. "Manpower Training Programmes and Employment Stability," Economica, London School of Economics and Political Science, vol. 63(249), pages 113-30, February. [Downloadable!] (restricted)
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  8. 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). [Downloadable!]
  9. Alfonso Flores-Lagunes & Arturo Gonzalez & Todd C. Neumann, 2007. "Estimating the Effects of Length of Exposure to a Training Program: The Case of Job Corps," IZA Discussion Papers 2846, Institute for the Study of Labor (IZA). [Downloadable!]
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  10. Lechner, Michael & Wunsch, Conny, 2007. "Are training programs more effective when unemployment is high?," IAB Discussion Paper 200707, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]. [Downloadable!]
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  11. Forslund, Anders & Johansson, Per & Lindqvist, Linus, 2004. "Employment subsidies - A fast lane from unemployment to work?," Working Paper Series 2004:18, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  12. 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. [Downloadable!] (restricted)
  13. Michael Lechner, 1999. "Identification and Estimation of Causal Effects of Multiple Treatments Under the Conditional Independence Assumption," IZA Discussion Papers 91, Institute for the Study of Labor (IZA). [Downloadable!]
  14. Michael Gerfin & Michael Lechner & Heidi Steiger, 2002. "Does subsidised temporary employment get the unemployed back to work? An econometric analysis of two different schemes," University of St. Gallen Department of Economics working paper series 2002 2002-22, Department of Economics, University of St. Gallen. [Downloadable!]
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  15. 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. [Downloadable!] (restricted)
  16. van Ours, Jan C., 2004. "The locking-in effect of subsidized jobs," Journal of Comparative Economics, Elsevier, vol. 32(1), pages 37-55, March. [Downloadable!] (restricted)
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  17. Rafael Lalive & Jan C. van Ours & Josef Zweimueller, . "The Impact of Active Labor Market Programs on the Duration of Unemployment," IEW - Working Papers iewwp041, Institute for Empirical Research in Economics - IEW. [Downloadable!]
  18. Lechner, Michael & Miquel, Ruth & Wunsch, Conny, 2005. "Long run Effects of Public Sector Sponsored Training in West Germany," CEPR Discussion Papers 4851, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  19. S. A. Murphy, 2003. "Optimal dynamic treatment regimes," Journal Of The Royal Statistical Society Series B, Royal Statistical Society, vol. 65(2), pages 331-355. [Downloadable!] (restricted)
  20. 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]. [Downloadable!]
  21. Hujer, Reinhard & Caliendo, Marco & Thomsen, Stephan L., 2004. "New evidence on the effects of job creation schemes in Germany--a matching approach with threefold heterogeneity," Research in Economics, Elsevier, vol. 58(4), pages 257-302, December. [Downloadable!] (restricted)
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  22. Bernd Fitzenberger & Aderonke Osikominu & Robert Völter, 2006. "Get Training or Wait? Long-Run Employment Effects of Training Programs for the Unemployed in West Germany," IZA Discussion Papers 2121, Institute for the Study of Labor (IZA). [Downloadable!]
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  23. Hernan M. A & Brumback B. & Robins J. M, 2001. "Marginal Structural Models to Estimate the Joint Causal Effect of Nonrandomized Treatments," Journal of the American Statistical Association, American Statistical Association, vol. 96, pages 440-448, June. [Downloadable!] (restricted)
  24. Fitzenberger, Bernd & Völter, Robert, 2007. "Long-run effects of training programs for the unemployed in East Germany," ZEW Discussion Papers 07-009, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  25. Michael Lechner, 2006. "Matching Estimating of Dynamic Treatment Models: Some Practical Issues," University of St. Gallen Department of Economics working paper series 2006 2006-03, Department of Economics, University of St. Gallen. [Downloadable!]
  26. Bernd Fitzenberger & Stefan Speckesser, 2005. "Employment Effects of the Provision of Specific Professional Skills and Techniques in Germany," IZA Discussion Papers 1868, Institute for the Study of Labor (IZA). [Downloadable!]
  27. Michael Lechner & Conny Wunsch, 2006. "Active Labour Market Policy in East Germany: Waiting for the Economy to Take Off," IZA Discussion Papers 2363, Institute for the Study of Labor (IZA). [Downloadable!]
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  28. 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. [Downloadable!] (restricted)
  29. Daniel Friedlander & David H. Greenberg & Philip K. Robins, 1997. "Evaluating Government Training Programs for the Economically Disadvantaged," Journal of Economic Literature, American Economic Association, vol. 35(4), pages 1809-1855, December. [Downloadable!] (restricted)
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