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

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  • Lechner, Michael
  • Wiehler, Stephan

Abstract

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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  • Lechner, Michael & Wiehler, Stephan, 2007. "Does the Order and Timing of Active Labour Market Programmes Matter?," CEPR Discussion Papers 6521, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:6521
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    Cited by:

    1. N. N., 2017. "WIFO-Monatsberichte, Heft 6/2017," WIFO Monatsberichte (monthly reports), WIFO, vol. 90(6), June.
    2. Jeff Borland, 2014. "Dealing with unemployment: What should be the role of labour market programs?," Evidence Base, Australia and New Zealand School of Government, vol. 2014(4), pages 1-21, December.
    3. Lechner, Michael & Sari, Nazmi, 2015. "Labor market effects of sports and exercise: Evidence from Canadian panel data," Labour Economics, Elsevier, vol. 35(C), pages 1-15.
    4. Jorge Andrés Vélez-Ospina & Isabel Busom Piquer, 2020. "Subsidizing Innovation Over the Business Cycle," Working Papers wpdea2001, Department of Applied Economics at Universitat Autonoma of Barcelona.
    5. Thorsten Stromback, 2010. "Earnings, Schooling and Vocational Education and Training," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 13(3), pages 241-263.
    6. Marloes Lammers & Lucy Kok, 2021. "Are active labor market policies (cost-)effective in the long run? Evidence from the Netherlands," Empirical Economics, Springer, vol. 60(4), pages 1719-1746, April.
    7. Sari, Nazmi & Lechner, Michael, 2015. "Long-run health effects of sports and exercise in Canada," Economics Working Paper Series 1520, University of St. Gallen, School of Economics and Political Science.
    8. Conny Wunsch, 2013. "Optimal Use of Labor Market Policies: The Role of Job Search Assistance," The Review of Economics and Statistics, MIT Press, vol. 95(3), pages 1030-1045, July.
    9. Katharina Dengler, 2019. "Effectiveness of sequences of classroom training for welfare recipients: what works best in West Germany?," Applied Economics, Taylor & Francis Journals, vol. 51(1), pages 1-46, January.
    10. Dengler, Katharina & Hohmeyer, Katrin, 2010. "Maßnahmesequenzen im SGB II : eine deskriptive Analyse (Measure sequences in Book II of the Social Code)," IAB-Forschungsbericht 201008, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    11. Reinhard Hujer, 2011. "Mikroökonometrie und Kausalität: Zur Bedeutung arbeitsmarktpolitischer Evaluationsstudien," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer;Deutsche Statistische Gesellschaft - German Statistical Society, vol. 5(1), pages 5-18, March.
    12. Rainer Eppel & Helmut Mahringer & Petra Sauer, 2017. "Österreich 2025 Arbeitslosigkeit und die Rolle der aktiven Arbeitsmarktpolitik," WIFO Monatsberichte (monthly reports), WIFO, vol. 90(6), pages 493-505, June.

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    More about this item

    Keywords

    Active Labour market policy; matching estimation; panel data; programme evaluation;
    All these keywords.

    JEL classification:

    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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