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Active Labor Market Policy Evaluations: A Meta-Analysis

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Author Info

  • Card, David

    ()
    (University of California, Berkeley)

  • Kluve, Jochen

    ()
    (Humboldt University Berlin, RWI)

  • Weber, Andrea

    ()
    (University of Mannheim)

Abstract

This paper presents a meta-analysis of recent microeconometric evaluations of active labor market policies. Our sample consists of 199 program estimates drawn from 97 studies conducted between 1995 and 2007. In about one-half of these cases we have both a short-term impact estimate (for a one-year post-program horizon) and a medium-term estimate (two-year horizon). We characterize the program estimates according to the type and duration of the program, the characteristics of the participants, and the evaluation methodology. Heterogeneity in all three dimensions affects the likelihood that an impact estimate is significantly positive, significantly negative, or statistically insignificant. Comparing program types, subsidized public sector employment programs have the least favorable impact estimates. Job search assistance programs have relatively favorable short-run impacts, whereas classroom and on-the-job training programs tend to show better outcomes in the medium-run than the short-run. Programs for youths are less likely to yield positive impacts than untargeted programs, but there are no large or systematic differences by gender. Methodologically, we find that the outcome variable used to measure program effectiveness matters. Evaluations based on registered unemployment durations are more likely to show favorable short-term impacts. Controlling for the outcome measure, and the type of program and participants, we find that experimental and non-experimental studies have similar fractions of significant negative and significant positive impact estimates, suggesting that the research designs used in recent non-experimental evaluations are unbiased.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4002.

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Length: 51 pages
Date of creation: Feb 2009
Date of revision:
Publication status: published in: The Economic Journal, 2010, 120, F452-F477
Handle: RePEc:iza:izadps:dp4002

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Keywords: meta-analysis; active labor market policy; program evaluation;

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References

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  1. Jochen Kluve & Christoph M. Schmidt, 2002. "Can training and employment subsidies combat European unemployment?," Economic Policy, CEPR;CES;MSH, CEPR;CES;MSH, vol. 17(35), pages 409-448, October.
  2. Wooldridge, Jeffrey M. & Imbens, Guido, 2009. "Recent Developments in the Econometrics of Program Evaluation," Scholarly Articles 3043416, Harvard University Department of Economics.
  3. Michael Gerfin & Michael Lechner, 2002. "A Microeconometric Evaluation of the Active Labour Market Policy in Switzerland," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 112(482), pages 854-893, October.
  4. Biewen, Martin & Fitzenberger, Bernd & Osikominu, Aderonke & Waller, Marie, 2007. "Which Program for Whom? Evidence on the Comparative Effectiveness of Public Sponsored Training Programs in Germany," IZA Discussion Papers 2885, Institute for the Study of Labor (IZA).
  5. Annette BERGEMANN & Gerard J. VAN DEN BERG, 2008. "Active Labor Market Policy Effects for Women in Europe – A Survey," Annales d'Economie et de Statistique, ENSAE, issue 91-92, pages 385-408.
  6. Barbara Sianesi, 2004. "An Evaluation of the Swedish System of Active Labor Market Programs in the 1990s," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 133-155, February.
  7. 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.
  8. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
  9. Orley Ashenfelter, 1986. "The Case for Evaluating Training Programs with Randomized Trials," Working Papers, Princeton University, Department of Economics, Industrial Relations Section. 583, Princeton University, Department of Economics, Industrial Relations Section..
  10. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," NBER Working Papers 6699, National Bureau of Economic Research, Inc.
  11. Michael Lechner & Conny Wunsch, 2006. "Active Labour Market Policy in East Germany: Waiting for the Economy to Take Off," University of St. Gallen Department of Economics working paper series 2006, Department of Economics, University of St. Gallen 2006-24, Department of Economics, University of St. Gallen.
  12. V. Joseph Hotz & Guido W. Imbens & Jacob A. Klerman, 2006. "Evaluating the Differential Effects of Alternative Welfare-to-Work Training Components: A Reanalysis of the California GAIN Program," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 24(3), pages 521-566, July.
  13. David H. Greenberg & Charles Michalopoulos & Philip K. Robins, 2003. "A meta-analysis of government-sponsored training programs," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 57(1), pages 31-53, October.
  14. Jespersen, Svend T. & Munch, Jakob R. & Skipper, Lars, 2008. "Costs and benefits of Danish active labour market programmes," Labour Economics, Elsevier, Elsevier, vol. 15(5), pages 859-884, October.
  15. Richardson, Katarina & van den Berg, Gerard J., 2002. "The effect of vocational employment training on the individual transition rate from unemployment to work," Working Paper Series, IFAU - Institute for Evaluation of Labour Market and Education Policy 2002:8, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  16. 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.
  17. Kluve, Jochen, 2010. "The effectiveness of European active labor market programs," Labour Economics, Elsevier, Elsevier, vol. 17(6), pages 904-918, December.
  18. Card, David & Chetty, Raj & Weber, Andrea, 2007. "The Spike at Benefit Exhaustion: Leaving the Unemployment System or Starting a New Job?," IZA Discussion Papers 2590, Institute for the Study of Labor (IZA).
  19. 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.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Políticas activas de empleo: qué funciona y qué se consigue
    by Samuel Bentolila in Nada Es Gratis on 2013-11-12 06:55:33
  2. La cultura del deshecho, la austeridad y la Garantía Juvenil
    by Florentino Felgueroso in Nada Es Gratis on 2014-06-12 06:00:44
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  1. Meta-Analysis in Economics

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