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

  • Kluve, Jochen


    (Humboldt University Berlin, RWI)

  • Lehmann, Hartmut


    (University of Bologna)

  • Schmidt, Christoph M.



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.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 355.

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Length: 59 pages
Date of creation: Sep 2001
Date of revision:
Handle: RePEc:iza:izadps:dp355
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  1. Joshua D. Angrist & Jinyong Hahn, 1999. "When to Control for Covariates? Panel-Asymptotic Results for Estimates of Treatment Effects," NBER Technical Working Papers 0241, National Bureau of Economic Research, Inc.
  2. 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.
  3. Marek Gora and Christoph M. Schmidt & Marek Gora and Christoph M. Schmidt, 1997. "Long-Term Unemployment, Unemployment Benefits and Social Assistance: The Polish Experience," William Davidson Institute Working Papers Series 110, William Davidson Institute at the University of Michigan.
  4. Jochen Kluve & Hartmut Lehmann & Christophe M. Schmidt, 1999. "Active Labor Market Policies in Poland: Human Capital Enhancement, Stigmatization or Benefit Churning?," LICOS Discussion Papers 8099, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  5. David Card & Daniel Sullivan, 1987. "Measuring the Effect of Subsidized Training Programs on Movements In andOut of Employment," NBER Working Papers 2173, National Bureau of Economic Research, Inc.
  6. Puhani, Patrick A., 1998. "Advantage through training? A microeconometric evaluation of the employment effects of active labour market programmes in Poland," ZEW Discussion Papers 98-25, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  7. Schmidt, Christoph M, 2001. "Knowing What Works. The Case for Rigorous Programme Evaluation," CEPR Discussion Papers 2826, C.E.P.R. Discussion Papers.
  8. 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.
  9. Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 605-54, October.
  10. Orley Ashenfelter & David Card, 1984. "Using the Longitudinal Structure of Earnings to Estimate the Effect of Training Programs," NBER Working Papers 1489, National Bureau of Economic Research, Inc.
  11. 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.
  12. Augurzky, Boris & Schmidt, Christoph M., 2001. "The Propensity Score: A Means to An End," IZA Discussion Papers 271, Institute for the Study of Labor (IZA).
  13. Heckman, James J & Smith, Jeffrey A, 1999. "The Pre-programme Earnings Dip and the Determinants of Participation in a Social Programme. Implications for Simple Programme Evaluation Strategies," Economic Journal, Royal Economic Society, vol. 109(457), pages 313-48, July.
  14. Jinyong Hahn, 1998. "On the Role of the Propensity Score in Efficient Semiparametric Estimation of Average Treatment Effects," Econometrica, Econometric Society, vol. 66(2), pages 315-332, March.
  15. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
  16. 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.
  17. LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-20, September.
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