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Three Approaches to the Evaluation of Active Labour Market Policy in East Germany Using Regional Data

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  • Hagen, Tobias
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    Abstract

    Using different regional data sources for East Germany the three largest active labour market policy (ALMP) programmes – job creation schemes (JCS), structural adjustment schemes (SAS) and public training (PT) – are evaluated. After addressing the regional allocation rule of the funding of ALMPs and the fundamental simultaneity problem in macroeconomic evaluation studies, identification strategies and possible instrumental variables are discussed. Three different approaches based on different econometric techniques for panel data (GMM and two-stage least squares) are applied. An augmented matching function indicates a negative effect of JCS on regional matching efficiency (inflows into regular employment) and no significant effects of PT and SAS. A reduced form approach based on the Beveridge curve does not indicate any long-term effects of ALMPs on regional job seeker rates. A dynamic labour demand estimation indicates that PT has no effects on employment and JCS leads to displacement of regular employment. --

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    Bibliographic Info

    Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 03-27.

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    Date of creation: 2003
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    Handle: RePEc:zbw:zewdip:1021

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    Keywords: Evaluation; Active Labour Market Policy; Identification; Regional Data; Matching Efficiency; Crowding-out;

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    Cited by:
    1. Suárez Cano, Patricia & Mayor Fernández, Matías & Cueto Iglesias, Begoña, 2011. "How important is access to employment offices in Spain? An urban and non-urban perspective," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 21, pages 119-140.
    2. Tangian, Andranik S., 2005. "Composite indicator of German regional policy and its use for optimizing subsidies to regional labour markets," WSI Discussion Papers 138, Wirtschafts- und Sozialwissenschaftliches Institut (WSI), Hans-Böckler-Stiftung.
    3. Joanna TYROWICZ & Piotr W�JCIK, 2009. "Some Remarks On The Effects Of Active Labour Market Policies In Post-Transition," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 4(2(8)_ Sum).
    4. David C Maré, 2005. "Indirect Effects of Active Labour Market Policies," HEW 0509004, EconWPA.
    5. Joanna Tyrowicz & Tomasz Jeruzalski, 2013. "(In)Efficiency of matching: the case of a post-transition economy," Economic Change and Restructuring, Springer, vol. 46(2), pages 255-275, May.
    6. Jacobi, Lena & Kluve, Jochen, 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).
    7. Christian Hohendanner, 2011. "Ein-Euro-Jobs und regulaere Beschaeftigung," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 231(2), pages 210-246, April.
    8. Hujer, Reinhard & Zeiss, Christopher, 2003. "Macroeconomic Impacts of ALMP on the Matching Process in West Germany," IZA Discussion Papers 915, Institute for the Study of Labor (IZA).

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