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Does the Order and Timing of Active Labour Market Programmes Matter?

  • Michael Lechner
  • Stephan Wiehler

This paper extends the traditional focus of active labour market policy evaluation from a static comparison of participation in a programme versus nonparticipation (or participation in another programme) to the evaluation of the effects of programme sequences, i.e. multiple participation or timing of such programmes. We use a dynamic evaluation framework that explicitly allows for dynamic selection into different stages of such sequences based on past intermediate outcomes to analyze multiple programmes, the timing of programmes, and the order of programmes. The analysis is based on exceptionally comprehensive data on the Austrian labour force. Our findings suggest that (i) active job search programmes are more effective after a qualification programme compared to the reverse order, that (ii) multiple participations in qualification measures dominates single participation, and that (iii) the effectiveness of specific labour market programmes deteriorates the later they start during an unemployment spell.

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File URL: http://hdl.handle.net/10.1111/10.1111/obes.2013.75.issue-2
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Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics and Statistics.

Volume (Year): 75 (2013)
Issue (Month): 2 (04)
Pages: 180-212

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Handle: RePEc:bla:obuest:v:75:y:2013:i:2:p:180-212
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  1. Annette Bergemann & Gerard van den Berg, 2006. "Active labour market policy effects for women in Europe - a survey," IFS Working Papers W06/26, Institute for Fiscal Studies.
  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].
  3. Michael Lechner & Stephan Wiehler, 2007. "Kids or Courses? Gender Differences in the Effects of Active Labor Market Policies," University of St. Gallen Department of Economics working paper series 2007 2007-08, Department of Economics, University of St. Gallen.
  4. Gerfin, Michael & Lechner, Michael & Steiger, Heidi, 2002. "Does subsidised temporary employment get the unemployed back to work? An econometric analysis of two different schemes," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 A2-2, International Conferences on Panel Data.
  5. Jan C. van Ours, 2002. "The Locking-in Effect of Subsidized Jobs," William Davidson Institute Working Papers Series 474, William Davidson Institute at the University of Michigan.
  6. Zweimuller, Josef & Winter-Ebmer, Rudolf, 1996. "Manpower Training Programmes and Employment Stability," Economica, London School of Economics and Political Science, vol. 63(249), pages 113-30, February.
  7. Kluve, Jochen & Lehmann, Hartmut & Schmidt, Christoph M, 1999. "Active Labour Market Policies in Poland: Human Capital Enhancement, Stigmatization or Benefit Churning?," CEPR Discussion Papers 2059, C.E.P.R. Discussion Papers.
  8. Lechner, Michael & Wunsch, Conny, 2006. "Are Training Programs More Effective When Unemployment Is High?," IZA Discussion Papers 2355, Institute for the Study of Labor (IZA).
  9. Bernd FITZENBERGER & Aderonke OSIKOMINU & Robert VÖLTER, 2008. "Get Training or Wait? Long-Run Employment Effects of Training Programs for the Unemployed in West Germany," Annales d'Economie et de Statistique, ENSAE, issue 91-92, pages 321-355.
  10. Fitzenberger, Bernd & Speckesser, Stefan, 2005. "Employment effects of the provision of specific professional skills and techniques in Germany," IAB Discussion Paper 200521, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  11. Miquel, Ruth & Lechner, Michael & Wunsch, Conny, 2005. "Long-Run Effects of Public Sector Sponsored Training in West Germany," ZEW Discussion Papers 05-02, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  12. Hernan M. A & Brumback B. & Robins J. M, 2001. "Marginal Structural Models to Estimate the Joint Causal Effect of Nonrandomized Treatments," Journal of the American Statistical Association, American Statistical Association, vol. 96, pages 440-448, June.
  13. Michael Gerfin & Michael Lechner, 2002. "A Microeconometric Evaluation of the Active Labour Market Policy in Switzerland," Economic Journal, Royal Economic Society, vol. 112(482), pages 854-893, October.
  14. Fitzenberger, Bernd & Völter, Robert, 2007. "Long-Run Effects of Training Programs for the Unemployed in East Germany," IZA Discussion Papers 2630, Institute for the Study of Labor (IZA).
  15. S. A. Murphy, 2003. "Optimal dynamic treatment regimes," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 65(2), pages 331-355.
  16. Daniel Friedlander & David H. Greenberg & Philip K. Robins, 1997. "Evaluating Government Training Programs for the Economically Disadvantaged," Journal of Economic Literature, American Economic Association, vol. 35(4), pages 1809-1855, December.
  17. Lechner, Michael, 1999. "Identification and Estimation of Causal Effects of Multiple Treatments Under the Conditional Independence Assumption," IZA Discussion Papers 91, Institute for the Study of Labor (IZA).
  18. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
  19. Hujer, Reinhard & Caliendo, Marco & Thomsen, Stephan L., 2004. "New evidence on the effects of job creation schemes in Germany--a matching approach with threefold heterogeneity," Research in Economics, Elsevier, vol. 58(4), pages 257-302, December.
  20. Lechner, Michael, 2009. "Sequential Causal Models for the Evaluation of Labor Market Programs," Journal of Business & Economic Statistics, American Statistical Association, vol. 27, pages 71-83.
  21. Rafael Lalive & Jan C. van Ours & Josef Zweimueller, . "The Impact of Active Labor Market Programs on the Duration of Unemployment," IEW - Working Papers 041, Institute for Empirical Research in Economics - University of Zurich.
  22. van Ours, J.C., 2004. "The locking-in effect of subsidized jobs," Other publications TiSEM c4fd99a1-4c2f-46c6-9ee2-3, Tilburg University, School of Economics and Management.
  23. Forslund, Anders & Johansson, Per & Lindqvist, Linus, 2004. "Employment subsidies - A fast lane from unemployment to work?," Working Paper Series 2004:18, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  24. Flores-Lagunes, Alfonso & Gonzalez, Arturo & Neumann, Todd C., 2007. "Estimating the Effects of Length of Exposure to a Training Program: The Case of Job Corps," IZA Discussion Papers 2846, Institute for the Study of Labor (IZA).
  25. Lechner, Michael & Melly, Blaise, 2007. "Earnings Effects of Training Programs," IZA Discussion Papers 2926, Institute for the Study of Labor (IZA).
  26. Weber, Andrea & Hofer, Helmut, 2004. "Are Job Search Programs a Promising Tool? A Microeconometric Evaluation for Austria," IZA Discussion Papers 1075, Institute for the Study of Labor (IZA).
  27. Michael Lechner, 2006. "Matching Estimating of Dynamic Treatment Models: Some Practical Issues," University of St. Gallen Department of Economics working paper series 2006 2006-03, Department of Economics, University of St. Gallen.
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