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Active Labour Market Policy in East Germany: Waiting for the Economy to Take Off

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  • Lechner, Michael

    (University of St. Gallen)

  • Wunsch, Conny

    (University of Basel)

Abstract

We investigate the effects of the most important East German active labour market programmes on the labour market outcomes of their participants. The analysis is based on a large and informative individual database coming from administrative data sources. Using matching methods, we find that over a horizon of 2.5 years after programme start the programmes fail to increase the employment chances of their participants in the regular labour market. However, the programmes may have other effects for their participants that may be considered important in the especially difficult situation experienced in the East German labour market.

Suggested Citation

  • Lechner, Michael & Wunsch, Conny, 2006. "Active Labour Market Policy in East Germany: Waiting for the Economy to Take Off," IZA Discussion Papers 2363, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp2363
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    References listed on IDEAS

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    1. Markus Frölich & Michael Lechner & Heidi Steiger, 2003. "Statistically Assisted Programme Selection - International Experiences and Potential Benefits for Switzerland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 139(III), pages 311-331, September.
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    More about this item

    Keywords

    programme evaluation; causal effects; matching estimation; panel data;
    All these keywords.

    JEL classification:

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

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