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Disentangling Treatment Effects of Polish Active Labor Market Policies: Evidence from Matched Samples

Author

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  • Kluve, Jochen

    () (Humboldt University Berlin, RWI)

  • Lehmann, Hartmut

    () (University of Bologna)

  • Schmidt, Christoph M.

    () (RWI)

Abstract

This paper estimates causal effects of two Polish active labor market policies - Training and Intervention Works - on employment probabilities. Using data from the 18th wave of the Polish Labor Force Survey we discuss three stages of an appropriately designed matching procedure and demonstrate how the method succeeds in balancing relevant covariates. The validity of this approach is illustrated using the estimated propensity score as a summary measure of balance. We implement a conditional difference-in-differences estimator of treatment effects based on individual trinomial sequences of pre-treatment labor market status. Our findings suggest that Training raises employment probability, while Intervention Works seems to lead to a negative treatment effect for men. Furthermore, we find that appropriate subdivision of the matched sample for conditional treatment effect estimation can add considerable insight to the interpretation of results.

Suggested Citation

  • Kluve, Jochen & Lehmann, Hartmut & Schmidt, Christoph M., 2001. "Disentangling Treatment Effects of Polish Active Labor Market Policies: Evidence from Matched Samples," IZA Discussion Papers 355, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp355
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    References listed on IDEAS

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    1. LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-620, September.
    2. Marek GÕra & Christoph M. Schmidt, 1998. "Long-term unemployment, unemployment benefits and social assistance: The Polish experience," Empirical Economics, Springer, vol. 23(1/2), pages 55-85.
    3. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Oxford University Press, vol. 64(4), pages 605-654.
    4. Michael Lechner, 2000. "An Evaluation of Public-Sector-Sponsored Continuous Vocational Training Programs in East Germany," Journal of Human Resources, University of Wisconsin Press, vol. 35(2), pages 347-375.
    5. Ashenfelter, Orley C, 1978. "Estimating the Effect of Training Programs on Earnings," The Review of Economics and Statistics, MIT Press, vol. 60(1), pages 47-57, February.
    6. Schmidt, Christoph M., 1999. "Knowing What Works: The Case for Rigorous Program Evaluation," IZA Discussion Papers 77, Institute for the Study of Labor (IZA).
    7. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
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    9. Kluve, Jochen & Lehmann, Hartmut & Schmidt, Christoph M., 1999. "Active Labor Market Policies in Poland: Human Capital Enhancement, Stigmatization, or Benefit Churning?," Journal of Comparative Economics, Elsevier, pages 61-89.
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    17. James J. Heckman & Jeffrey A. Smith, 1999. "The Pre-Program Earnings Dip and the Determinants of Participation in a Social Program: Implications for Simple Program Evaluation Strategies," NBER Working Papers 6983, National Bureau of Economic Research, Inc.
    18. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
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    Citations

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    Cited by:

    1. Núria Rodríguez-Planas, 2007. "What Works Best For Getting the Unemployed Back to Work: Employment Services or Small-Business Assistance Programs? Evidence from Romania," UFAE and IAE Working Papers 712.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    2. Jeff Borland & Yi-Ping Tseng, 2004. "Does 'Work for the Dole' Work?," Melbourne Institute Working Paper Series wp2004n14, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    3. Venetoklis, Takis, 2002. "Public Policy Evaluation: Introduction to Quantitative Methodologies," Research Reports 90, VATT Institute for Economic Research.
    4. Catalina Amuedo-Dorantes & Miguel Malo & Fernando Muñoz-Bullón, 2008. "The Role of Temporary Help Agency Employment on Temp-to-Perm Transitions," Journal of Labor Research, Springer, vol. 29(2), pages 138-161, June.
    5. Nuria Rodriguez-Planas† & Jacob Benus, 2007. "Evaluative Active Labor Market Programmes in Romania," Working Papers 2007-31, FEDEA.
    6. Maciej Bukowski & Piotr Lewandowski, 2005. "Transitions from unemployment in Poland: a multinomial logit analysis," Labor and Demography 0511008, EconWPA, revised 19 Dec 2005.
    7. F. Alfonso Arellano, 2010. "Do Training Programmes Get The Unemployed Back To Work? A Look At The Spanish Experience," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 18(2), pages 39-65, Autumn.
    8. Venetoklis, Takis, 2004. "An Evaluation of Wage Subsidy Programs to SMEs Utilising Propensity Score Matching," Research Reports 106, VATT Institute for Economic Research.
    9. Jeff Borland & Yi-Ping Tseng, 2003. "How Do Administrative Arrangements Affect Exit from Unemployment Payments? The Case of the Job Seeker Diary in Australia," Melbourne Institute Working Paper Series wp2003n27, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    10. Núria Rodríguez-Planas & Jacob Benus, 2007. "Evaluating Active Labor Markets in Romania," UFAE and IAE Working Papers 699.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    11. Betcherman, Gordon & Olivas, Karina & Dar, Amit, 2004. "Impacts of active labor market programs : new evidence from evaluations with particular attention to developing and transition countries," Social Protection and Labor Policy and Technical Notes 29142, The World Bank.

    More about this item

    Keywords

    propensity score; transition; Active labor market policy; exact matching;

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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