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An Evaluation of Public Employment Programmes in the East German State of Sachsen-Anhalt

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Author Info
Michael Lechner () (University of St. Gallen Swiss Institute for International Economics and Applied Economic Research (SIAW))
Martin Eichler (University of St. Gallen)

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Abstract

In East Germany, active labour market policies (ALMPs) are used on a large scale to contain fast rising unemployment after unification. This paper evaluates the effects for participants in public employment programmes (PEPs), that are an important part of ALMPs. It focuses on individual unemployment probabilities. By concentrating on the state of Sachsen-Anhalt, the econometric analysis can use a new and large panel, the Arbeitsmarktmonitor Sachsen-Anhalt. We aim at nonparametric identification of the effects of PEPs by combining the use of comparison groups with differencing over time to correct for selection effects. Our results indicate that PEP participation reduces the unemployment risk of the participants.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 94.

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Length: 56 pages
Date of creation: Dec 1999
Date of revision:
Handle: RePEc:iza:izadps:dp94

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Related research
Keywords: East German labour markets; treatment effects; panel data; matching; differences-in-differences;

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Find related papers by JEL classification:
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy

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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.:
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    Other versions:
  2. Kraus, Florian & Puhani, Patrick A. & Steiner, Viktor, 1997. "Employment Effects of Publicly Financed Training Programs The East German Experience," ZEW Discussion Papers 97-33, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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  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)
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(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. Fitzenberger, Bernd & Speckesser, Stefan, 2000. "Zur wissenschaftlichen Evaluation der aktiven Arbeitsmarktpolitik in Deutschland : ein Überblick," ZEW Discussion Papers 00-06, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  2. Lechner, Michael & Wunsch, Conny, 2006. "Active labour market policy in East Germany : waiting for the economy to take off," IAB Discussion Paper 200620, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]. [Downloadable!]
    Other versions:
  3. Rodney Haddow & Steffen G. Schneider & Thomas R. Klassen, 2006. "Can Decentralization Alleviate Labour Market Dysfunctions in Marginal Jurisdictions? Active Labour Market Policies in Nova Scotia and Saxony-Anhalt," Canadian Public Policy, University of Toronto Press, vol. 32(3), pages 317-338, September. [Downloadable!] (restricted)
  4. Jeffrey Smith & Petra Todd, 2003. "Does Matching Overcome Lalonde's Critique of Nonexperimental Estimators?," University of Western Ontario, CIBC Human Capital and Productivity Project Working Papers 20035, University of Western Ontario, CIBC Human Capital and Productivity Project. [Downloadable!]
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  5. Cockx, Bart & Ries, Jean, 2004. "The Exhaustion of Unemployment Benefits in Belgium: Does it Enhance the Probability of Employment?," IZA Discussion Papers 1177, Institute for the Study of Labor (IZA). [Downloadable!]
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  6. Jochen Kluve & Lena Jacobi, 2006. "Before and After the Hartz Reforms: The Performance of Active Labour Market Policy in Germany," RWI Discussion Papers 0041, Rheinisch-Westfälisches Institut für Wirtschaftsforschung. [Downloadable!]
  7. Eva Reinowski & Birgit Schultz & Jürgen Wiemers, 2003. "Evaluation von Maßnahmen der aktiven Arbeitsmarktpolitik mit Hilfe eines iterativen Matching-Algorithmus Eine Fallstudie über langzeitarbeitslose Maßnahmeteilnehmer in Sachsen," IWH Discussion Papers 173, Halle Institute for Economic Research. [Downloadable!]
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  10. Annette Bergemann & Bernd Fitzenberger & Stefan Speckesser, 2009. "Evaluating the dynamic employment effects of training programs in East Germany using conditional difference-in-differences," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(5), pages 797-823. [Downloadable!]
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  11. Bergemann, Annette & van den Berg, Gerard, 2007. "Active labor market policy effects for women in Europe - a survey," Working Paper Series 2007:3, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
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  12. Moreno-Serra, R, . "Health Programme Evaluation by Propensity Score Matching: Accounting for Treatment Intensity and Health Externalities with an Application to Brazil," Health, Econometrics and Data Group (HEDG) Working Papers 09/05, HEDG, c/o Department of Economics, University of York. [Downloadable!]
  13. Hujer, Reinhard & Thomsen, Stephan L., 2006. "Wirksamkeit von Arbeitsbeschaffungsmaßnahmen in Deutschland : empirische Befunde mikroökonometrischer Analysen," ZEW Discussion Papers 06-54, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  14. Lechner, Michael & Pfeiffer, Friedhelm & Spengler, Hannes & Almus, Matthias, 2000. "The impact of non-profit temping agencies on individual labour market success in the West German state of Rhineland-Palatinate," ZEW Discussion Papers 00-02, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  15. Jochen Kluve, 2006. "The Effectiveness of European Active Labor Market Policy," IZA Discussion Papers 2018, Institute for the Study of Labor (IZA). [Downloadable!]
  16. Ruth Miquel, 2003. "Identification of Effects of Dynamic Treatments with a Difference-in-Differences Approach," University of St. Gallen Department of Economics working paper series 2003 2003-06, Department of Economics, University of St. Gallen. [Downloadable!]
  17. Lena Jacobi & Jochen Kluve, 2006. "Before and After the Hartz Reforms: The Performance of Active Labour Market Policy in Germany," IZA Discussion Papers 2100, Institute for the Study of Labor (IZA). [Downloadable!]
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