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Statistical Treatment Choice: An Application to Active Labour Market Programmes

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  • Markus Frölich

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Abstract

Choosing among a number of available treatments the most suitable for a given subject is an issue of everyday concern. A physician has to choose an appropriate drug treatment or medical treatment for a given patient, based on a number of observed covariates X and prior experience. A case worker in an unemployment office has to choose among a variety of available active labour market programmes for unemployed job seekers. In this paper, two methodological advancements are developed: First, this methodology permits to combine a data set on previously treated individuals with a data set on new clients when the regressors available in these two data sets do not coincide. It thereby incorporates additional regressors on previously treated that are not available for the current clients. Such a situation often arises due to cost considerations, data confidentiality reasons or time delays in data availability. Second, statistical inference on the recommended treatment choice is analyzed and conveyed to the agent, physician or case worker in a comprehensible and transparent way. The implementation of this methodology in a pilot study in Switzerland for choosing among active labour market programmes (ALMP) for unemployed job seekers is described.

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Bibliographic Info

Paper provided by Department of Economics, University of St. Gallen in its series University of St. Gallen Department of Economics working paper series 2006 with number 2006-14.

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Length: 47 pages
Date of creation: Jun 2006
Date of revision:
Handle: RePEc:usg:dp2006:2006-14

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Keywords: Statistical treatment rules; active labour market policies;

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References

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Cited by:
  1. Stefanie Behncke & Markus Frölich & Michael Lechner, 2009. "Targeting Labour Market Programmes - Results from a Randomized Experiment," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 145(III), pages 221-268, September.
  2. Michael Rosholm & Jonas Staghøj & Michael Svarer, 2007. "A Statistical Programme Assignment Model," Economics Working Papers 2007-16, School of Economics and Management, University of Aarhus.
  3. Stefanie Behncke & Markus Frölich & Michael Lechner, 2006. "Statistical Assistance for Programme Selection - For a Better Targeting of Active Labour Market Policies in Switzerland," University of St. Gallen Department of Economics working paper series 2006 2006-09, Department of Economics, University of St. Gallen.
  4. Stefanie Behncke & Markus Frölich & Michael Lechner, 2006. "Aktive Arbeitsmarktpolitik in Deutschland und der Schweiz - eine Gegenüberstellung," University of St. Gallen Department of Economics working paper series 2006 2006-13, Department of Economics, University of St. Gallen.

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