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Disentangling Treatment Effects of Polish Active Labor Market Policies: Evidence from Matched Samples

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Author Info
Kluve, Jochen () (Heriot-Watt University Edinburgh, WDI University of Michigan, Ann Arbor, EERC Kiev and IZA, Bonn)
Lehmann, Hartmut (Heriot-Watt University Edinburgh, WDI University of Michigan, Ann Arbor, EERC Kiev and IZA, Bonn)
Schmidt, Christoph M. () (Alfred Weber Institute, University of Heidelberg, CEPR London and IZA, Bonn)

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Abstract

This paper estimates causal effects of two Polish active labor market policies - Training and Intervention Works - on employment probabilities. Using data from the 18th wave of the Polish Labor Force Survey we discuss three stages of an appropriately designed matching procedure and demonstrate how the method succeeds in balancing relevant covariates. The validity of this approach is illustrated using the estimated propensity score as a summary measure of balance. We implement a conditional difference-in-differences estimator of treatment effects based on individual trinomial sequences of pre-treatment labor market status. Our findings suggest that Training raises employment probability, while Intervention Works seems to lead to a negative treatment effect for men. Furthermore, we find that appropriate subdivision of the matched sample for conditional treatment effect estimation can add considerable insight to the interpretation of results.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 355.

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Length: 58 pages
Date of creation: Sep 2001
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Handle: RePEc:iza:izadps:dp355

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Related research
Keywords: Active labor market policy transition exact matching propensity score

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Find related papers by JEL classification:
C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis
J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  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. Puhani, Patrick A, 1998. "Advantage Through Training? A Microeconometric Evaluation of the Employment Effects of Active Labour Market Programmes in Poland," CEPR Discussion Papers 2000, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  3. Marek GÕra & Christoph M. Schmidt, 1998. "Long-term unemployment, unemployment benefits and social assistance: The Polish experience," Empirical Economics, Springer, vol. 23(1/2), pages 55-85. [Downloadable!] (restricted)
    Other versions:
  4. Christoph M. Schmidt, 1999. "Knowing What Works The Case for Rigorous Program Evaluation," IZA Discussion Papers 77, Institute for the Study of Labor (IZA). [Downloadable!]
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  5. LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-20, September. [Downloadable!] (restricted)
  6. Dehejia, R.H. & Wahba, S., 1998. "Propensity Score Matching Methods for Non-Experimental Causal Studies," Discussion Papers 1998_02, Columbia University, Department of Economics.
    Other versions:
  7. James J. Heckman & Jeffrey A. Smith, 1999. "The Pre-Program Earnings Dip and the Determinants of Participation in a Social Program: Implications for Simple Program Evaluation Strategies," NBER Working Papers 6983, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Blackwell Publishing, vol. 64(4), pages 605-54, October. [Downloadable!] (restricted)
  9. Card, David & Sullivan, Daniel G, 1988. "Measuring the Effect of Subsidized Training Programs on Movements in and out of Employment," Econometrica, Econometric Society, vol. 56(3), pages 497-530, May. [Downloadable!] (restricted)
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  10. Augurzky, Boris & Schmidt, Christoph M., 2001. "The Propensity Score: A Means to An End," IZA Discussion Papers 271, Institute for the Study of Labor (IZA). [Downloadable!]
  11. Heckman, James J & Smith, Jeffrey A, 1999. "The Pre-programme Earnings Dip and the Determinants of Participation in a Social Programme. Implications for Simple Programme Evaluation Strategies," Economic Journal, Royal Economic Society, vol. 109(457), pages 313-48, July. [Downloadable!] (restricted)
  12. Ashenfelter, Orley C, 1978. "Estimating the Effect of Training Programs on Earnings," The Review of Economics and Statistics, MIT Press, vol. 60(1), pages 47-57, February. [Downloadable!] (restricted)
  13. Joshua D. Angrist & Jinyong Hahn, 1999. "When to Control for Covariates? Panel-Asymptotic Results for Estimates of Treatment Effects," NBER Technical Working Papers 0241, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  14. Michael Lechner, 1999. "An Evaluation of Public-Sector-Sponsored Continuous Vocational Training Programs in East Germany," IZA Discussion Papers 93, Institute for the Study of Labor (IZA). [Downloadable!]
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  15. Ashenfelter, Orley & Card, David, 1985. "Using the Longitudinal Structure of Earnings to Estimate the Effect of Training Programs," The Review of Economics and Statistics, MIT Press, vol. 67(4), pages 648-60, November. [Downloadable!] (restricted)
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  16. Jinyong Hahn, 1998. "On the Role of the Propensity Score in Efficient Semiparametric Estimation of Average Treatment Effects," Econometrica, Econometric Society, vol. 66(2), pages 315-332, March.
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Nuria Rodriguez-Planas† & Jacob Benus, 2007. "Evaluative Active Labor Market Programmes in Romania," Working Papers 2007-31, FEDEA. [Downloadable!]
  2. Jeff Borland & Yi-Ping Tseng, 2003. "How Do Administrative Arrangements Affect Exit from Unemployment Payments? The Case of the Job Seeker Diary in Australia," Melbourne Institute Working Paper Series wp2003n27, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
  3. Takis Venetoklis, 2004. "An Evaluation of Wage Subsidy Programs to SMEs Utilising Propensity Score Matching," VATT Research Reports 106, Government Institute for Economic Research (VATT). [Downloadable!]
  4. Núria Rodríguez-Planas & Jacob Benus, 2007. "Evaluating Active Labor Markets in Romania," UFAE and IAE Working Papers 699.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC). [Downloadable!]
  5. Núria Rodríguez-Planas, 2007. "What Works Best For Getting the Unemployed Back to Work: Employment Services or Small-Business Assistance Programs? Evidence from Romania," UFAE and IAE Working Papers 712.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC). [Downloadable!]
    Other versions:
  6. Jeff Borland & Yi-Ping Tseng, 2004. "Does 'Work for the Dole' Work?," Melbourne Institute Working Paper Series wp2004n14, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
  7. Takis Venetoklis, 2002. "Public Policy Evaluation: Introduction to Quantitative Methodologies," VATT Research Reports 90, Government Institute for Economic Research (VATT). [Downloadable!]
  8. Maciej Bukowski & Piotr Lewandowski, 2005. "Transitions from unemployment in Poland: a multinomial logit analysis," Labor and Demography 0511008, EconWPA, revised 07 Dec 2005. [Downloadable!]
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