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Macroeconometric Evaluation of Active Labour Market Policies in Germany. A Dynamic Panel Approach Using Regional Data

In: The European Labour Market. Regional Dimensions

  • Reinhard Hujer

    (University of Frankfurt)

  • Uwe Blien

    (Institute for Employment Research (IAB))

  • Marco Caliendo

    (Potsdam University)

  • Christopher Zeiss

    (University of Frankfurt)

Most evaluation studies of active labour market policies (ALMP) focus on the micro-econometric evaluation approach using individual data. However, as the microeconometric approach usually ignores impacts on the non-participants, it should be seen as a first step to a complete evaluation which has to be followed by an analysis on the macroeconomic level. As a starting point for our analysis we discuss the effects of ALMP in a theoretical labour market framework augmented by ALMP. We estimate the impacts of ALMP in Germany for the time period 1999-2001 with regional data of 175 labour office districts. Due to the high persistence of German labour market data the application of a dynamic model is crucial. Furthermore our analysis accounts especially for the inherent simultaneity problem of ALMP. For West Germany we find positive effects of vocational training and job creation schemes on the labour market situation, whereas the results for East Germany do not allow profound statements.

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This chapter was published in:
  • Floro Ernesto Caroleo & Sergio Destefanis (ed.), 2006. "The European Labour Market. Regional Dimensions," AIEL Series in Labour Economics, AIEL - Associazione Italiana Economisti del Lavoro, number 01.
  • This item is provided by AIEL - Associazione Italiana Economisti del Lavoro in its series AIEL Series in Labour Economics with number 01-14.
    Handle: RePEc:ail:chapts:01-14
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