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“Active Labor Market Policy Effects in a Dynamic Setting”

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Author Info

  • Bruno Crépon

    (Crest)

  • Marc Ferracci

    (Crest)

  • Grégory Jolivet

    (Crest)

  • Gerard J. van den Berg

    (Crest)

Abstract

This paper develops and implements a method to identify and estimate treatmenteffects in a dynamic setting where treatments may occur at any point in time. Bycombining the standard matching approach to the timing-of-events approach, itdemonstrates that the effect of the treatment on the treated at a given date can beidentified although non-treated may be treated later in time. The approach builds on a“no anticipation” assumption and the assumption of conditional independence betweenthe duration before treatment and the duration before exit. To illustrate the approach,the paper studies the effect of training for unemployed workers in France, using a richregister data set. Training has little impact on unemployment duration. Thecontamination of the standard matching estimator due to later entries into treatment islarge if the treatment probability is high.

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Bibliographic Info

Paper provided by Centre de Recherche en Economie et Statistique in its series Working Papers with number 2008-25.

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Length: 12
Date of creation: 2008
Date of revision:
Handle: RePEc:crs:wpaper:2008-25

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References

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  1. Fredriksson, Peter & Johansson, Per, 2004. "Dynamic Treatment Assignment – The Consequences for Evaluations Using Observational Data," IZA Discussion Papers 1062, Institute for the Study of Labor (IZA).
  2. Michael Lechner & Ruth Miquel, 2010. "Identification of the effects of dynamic treatments by sequential conditional independence assumptions," Empirical Economics, Springer, vol. 39(1), pages 111-137, August.
  3. Fredriksson, Peter & Johansson, Per, 2008. "Dynamic Treatment Assignment," Journal of Business & Economic Statistics, American Statistical Association, vol. 26, pages 435-445.
  4. Jaap H. Abbring & Gerard J. van den Berg, 2003. "The Nonparametric Identification of Treatment Effects in Duration Models," Econometrica, Econometric Society, vol. 71(5), pages 1491-1517, 09.
  5. de Luna, Xavier & Johansson, Per, 2007. "Matching estimators for the effect of a treatment on survival times," Working Paper Series 2007:1, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  6. Stéphane Carcillo & David Grubb, 2006. "From Inactivity to Work: The Role of Active Labour Market Policies," OECD Social, Employment and Migration Working Papers 36, OECD Publishing.
  7. Richardson, Katarina & van den Berg, Gerard J, 2008. "Duration dependence versus unobserved heterogeneity in treatment effects: Swedish labor market training and the transition rate to employment," Working Paper Series 2008:7, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  8. Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Wiley Blackwell, vol. 65(2), pages 261-94, April.
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Citations

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Cited by:
  1. Gerard van den Berg & Antoine Bozio & Monica Costa Dias, 2013. "Policy discontinuity and duration outcomes," IFS Working Papers W13/27, Institute for Fiscal Studies.
  2. Aderonke Osikominu, 2012. "Quick job entry or long-term human capital development? The dynamic effects of alternative training schemes," ECON - Working Papers 076, Department of Economics - University of Zurich.
  3. Martin Biewen & Bernd Fitzenberger & Aderonke Osikominu & Marie Paul, 2012. "The Effectiveness of Public Sponsored Training Revisited: The Importance of Data and Methodological Choices," NRN working papers 2012-09, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  4. Gaure, Simen & Røed, Knut & Westlie, Lars, 2012. "Job search incentives and job match quality," Labour Economics, Elsevier, vol. 19(3), pages 438-450.
  5. Gaure, Simen & Røed, Knut & van den Berg, Gerard J. & Zhang, Tao, 2010. "Estimation of Heterogeneous Treatment Effects on Hazard Rates," IZA Discussion Papers 4794, Institute for the Study of Labor (IZA).
  6. Singer, Christine & Toomet, Ott-Siim, 2013. "On government-subsidized training programs for older workers," IAB Discussion Paper 201321, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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