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Targeting Labour Market Programmes - Results from A Randomised Experiment

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  • Behncke, Stefanie
  • Frölich, Markus
  • Lechner, Michael

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. This statistical support system predicted the labour market outcome for each programme and thereby suggested an 'optimal' labour market programme for each unemployed person. The support system was piloted in several employment offices. In those pilot offices, half of the caseworkers used the system and the other half acted as control group. The allocation of the caseworkers to treatment and control group was random. The experiment was designed such that caseworkers retained full discretion about the choice of active labour market programmes, and the evaluation results showed that caseworkers largely ignored 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

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6537.

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Date of creation: Oct 2007
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Handle: RePEc:cpr:ceprdp:6537

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

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References

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  1. Lalive, R. & Ours, J.C. van & Zweimüller, J., 2002. "The Effect of Benefit Sanctions on the Duration of Unemployment," Discussion Paper, Tilburg University, Center for Economic Research 2002-19, Tilburg University, Center for Economic Research.
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  3. Markus Frölich, 2006. "Statistical Treatment Choice: An Application to Active Labour Market Programmes," University of St. Gallen Department of Economics working paper series 2006, Department of Economics, University of St. Gallen 2006-14, Department of Economics, University of St. Gallen.
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  6. Lechner, Michael & Smith, Jeffrey, 2003. "What is the Value Added by Caseworkers?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3825, C.E.P.R. Discussion Papers.
  7. Charles F. Manski, 2005. "Search Profiling with Partial Knowledge of Deterrence," NBER Working Papers 11848, National Bureau of Economic Research, Inc.
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  18. 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, Elsevier, vol. 95(2), pages 415-442, April.
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  20. Christopher J. O'Leary & Paul T. Decker & Stephen A. Wandner, 2002. "Targeting Reemployment Bonuses," Book chapters authored by Upjohn Institute researchers, W.E. Upjohn Institute for Employment Research, in: Stephen A. Wandner & Randall W. Eberts & Christopher J. O'Leary (ed.), Targeting Employment Services, chapter 6, pages 161-182 W.E. Upjohn Institute for Employment Research.
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Citations

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Cited by:
  1. Mitnik, Oscar A., 2009. "How Do Training Programs Assign Participants to Training? Characterizing the Assignment Rules of Government Agencies for Welfare-to-Work Programs in California," IZA Discussion Papers 4024, Institute for the Study of Labor (IZA).
  2. Djebbari, Habiba & Smith, Jeffrey, 2008. "Heterogeneous impacts in PROGRESA," Journal of Econometrics, Elsevier, Elsevier, vol. 145(1-2), pages 64-80, July.
  3. Pierre Koning, 2009. "The effectiveness of Public Employment Service workers in the Netherlands," Empirical Economics, Springer, Springer, vol. 37(2), pages 393-409, October.
  4. 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.
  5. Michael Rosholm & Jonas Staghøj & Michael Svarer, 2007. "A Statistical Programme Assignment Model," Economics Working Papers, School of Economics and Management, University of Aarhus 2007-16, School of Economics and Management, University of Aarhus.
  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, Economic and Social Studies, vol. 43(1), pages 135–164.
  7. 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).

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