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Targeting Labour Market Programmes - Results from A Randomised Experiment

  • Behncke, Stefanie
  • Frölich, Markus
  • Lechner, Michael

We evaluate a randomized experiment of a statistical support system developed to assist caseworkers in Swiss employment offices in choosing appropriate active labour market programmes for their unemployed clients. This statistical support system predicted the labour market outcome for each programme and thereby suggested an 'optimal' labour market programme for each unemployed person. The support system was piloted in several employment offices. In those pilot offices, half of the caseworkers used the system and the other half acted as control group. The allocation of the caseworkers to treatment and control group was random. The experiment was designed such that caseworkers retained full discretion about the choice of active labour market programmes, and the evaluation results showed that caseworkers largely ignored the statistical support system. This indicates that stronger incentives are needed for caseworkers to comply with statistical profiling and targeting systems.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6537.

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Date of creation: Oct 2007
Date of revision:
Handle: RePEc:cpr:ceprdp:6537
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  1. Lechner, Michael & Smith, Jeffrey A., 2003. "What is the Value Added by Caseworkers?," IZA Discussion Papers 728, Institute for the Study of Labor (IZA).
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  11. Manski, Charles F., 2000. "Identification problems and decisions under ambiguity: Empirical analysis of treatment response and normative analysis of treatment choice," Journal of Econometrics, Elsevier, vol. 95(2), pages 415-442, April.
  12. Frölich, Markus & Lechner, Michael & Steiger, Heidi, 2003. "Statistically assisted programme selection - International experiences and potential benefits for Switzerland," Working Paper Series 2004:1, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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  27. Nicola Persico & Petra Todd, 2006. "Generalising the Hit Rates Test for Racial Bias in Law Enforcement, With an Application to Vehicle Searches in Wichita," Economic Journal, Royal Economic Society, vol. 116(515), pages F351-F367, November.
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