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Microeconometric Evaluation of the Active Labour Market Policy in Switzerland

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Author Info

  • Gerfin, Michael

    ()
    (University of Bern)

  • Lechner, Michael

    ()
    (University of St. Gallen)

Abstract

In the second part of the 1990’s Switzerland conducted an ambitious active labour market policy (ALMP) encompassing a wide variety of programmes. We evaluate the effects of these programmes on the individual employment probability of potential participants. Our econometric analysis uses unusually informative data originating from administrative unemployment and social security records. We apply a matching estimator adapted for the case of multiple programmes. We find substantial positive effects for one particular programme that is a unique feature of the Swiss ALMP. It consists of a wage subsidy for temporary jobs in the regular labour market that would otherwise not be taken up by the unemployed. We also find large negative effects for traditional employment programmes operated in sheltered labour markets. For training courses the results are mixed.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 154.

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Length: 82 pages
Date of creation: May 2000
Date of revision:
Publication status: published in: Economic Journal, 2002, 112 (482), 854-893
Handle: RePEc:iza:izadps:dp154

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Related research

Keywords: Unemployment; treatment effects; balancing score; matching; evaluation of multiple programmes; Swiss labour market;

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References

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  1. Guido W. Imbens, 1999. "The Role of the Propensity Score in Estimating Dose-Response Functions," NBER Technical Working Papers, National Bureau of Economic Research, Inc 0237, National Bureau of Economic Research, Inc.
  2. Lechner, Michael, 1999. "Earnings and Employment Effects of Continuous Off-the-Job Training in East Germany after Unification," Journal of Business & Economic Statistics, American Statistical Association, American Statistical Association, vol. 17(1), pages 74-90, January.
  3. Michael Lechner, 2000. "Programme Heterogeneity and Propensity Score Matching: An Application to the Evaluation of Active Labour Market Policies," Econometric Society World Congress 2000 Contributed Papers, Econometric Society 0647, Econometric Society.
  4. Borsch-Supan, Axel & Hajivassiliou, Vassilis A., 1993. "Smooth unbiased multivariate probability simulators for maximum likelihood estimation of limited dependent variable models," Journal of Econometrics, Elsevier, Elsevier, vol. 58(3), pages 347-368, August.
  5. Lalive, Rafael & van Ours, Jan C & Zweimüller, Josef, 2000. "The Impact Of Active Labour Market Policies And Benefit Entitlement Rules On The Duration Of Unemployment," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2451, C.E.P.R. Discussion Papers.
  6. Lechner, Michael, 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).
  7. McFadden, Daniel L., 1984. "Econometric analysis of qualitative response models," Handbook of Econometrics, Elsevier, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 24, pages 1395-1457 Elsevier.
  8. John Geweke & Michael Keane & David Runkle, 1994. "Alternative computational approaches to inference in the multinomial probit model," Staff Report, Federal Reserve Bank of Minneapolis 170, Federal Reserve Bank of Minneapolis.
  9. Michael Lechner, 2000. "An Evaluation of Public-Sector-Sponsored Continuous Vocational Training Programs in East Germany," Journal of Human Resources, University of Wisconsin Press, vol. 35(2), pages 347-375.
  10. LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, American Economic Association, vol. 76(4), pages 604-20, September.
  11. Joshua Angrist & Alan Krueger, 1998. "Empirical Strategies in Labor Economics," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 98-7, Massachusetts Institute of Technology (MIT), Department of Economics.
  12. Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 65(2), pages 261-94, April.
  13. Robert G. Fay, 1996. "Enhancing the Effectiveness of Active Labour Market Policies: Evidence from Programme Evaluations in OECD Countries," OECD Labour Market and Social Policy Occasional Papers, OECD Publishing 18, OECD Publishing.
  14. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, Econometric Society, vol. 66(5), pages 1017-1098, September.
  15. Rajeev H. Dehejia & Sadek Wahba, 1998. "Causal Effects in Non-Experimental Studies: Re-Evaluating the Evaluation of Training Programs," NBER Working Papers 6586, National Bureau of Economic Research, Inc.
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  1. Ed Balls and Workfare.
    by Ralph Musgrave in Ralphonomics on 2013-01-07 08:18:00
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