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Active labor market policy effects in a dynamic setting

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Author Info

  • Crépon, Bruno

    (CREST-INSEE)

  • Ferracci, Marc

    (University of Marne-la-Vallée)

  • Jolivet, Grégory

    (University of Bristol)

  • van den Berg, Gerard J.

    ()
    (IFAU - Institute for Labour Market Policy Evaluation)

Abstract

This paper implements a method to identify and estimate treatment effects in a dynamic setting where treatments may occur at any point in time. By relating the standard matching approach to the timing-of-events approach, it demonstrates that effects of the treatment on the treated at a given date can be identified even though non-treated may be treated later in time. The approach builds on a "no anticipation" assumption and the assumption of conditional independence between the duration until treatment and the counterfactual durations until exit. To illustrate the approach, the paper studies the effect of training for unemployed workers in France, using a rich register data set. Training has little impact on unemployment duration. The contamination of the standard matching estimator due to later entries into treatment is large if the treatment probability is high.

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Bibliographic Info

Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2009:1.

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Length: 13 pages
Date of creation: 20 Jan 2009
Date of revision:
Handle: RePEc:hhs:ifauwp:2009_001

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Related research

Keywords: Treatment; program participation; unemployment duration; training; propensity score; matching; contamination bias;

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References

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  1. 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.
  2. Fredriksson, Peter & Johansson, Per, 2008. "Dynamic Treatment Assignment," Journal of Business & Economic Statistics, American Statistical Association, vol. 26, pages 435-445.
  3. 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.
  4. 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).
  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. 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.
  7. 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.
  8. 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.
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Citations

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Cited by:
  1. 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.
  2. 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.
  3. 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).
  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. 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].
  6. Gerard van den Berg & Antoine Bozio & Monica Costa Dias, 2013. "Policy discontinuity and duration outcomes," IFS Working Papers W13/27, Institute for Fiscal Studies.

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