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Macroeconometric Evaluation of Active Labour Market Policies in Germany – A Dynamic Panel Approach Using Regional Data

Author Info

Listed author(s):
  • Hujer, Reinhard

    ()

    (Goethe University Frankfurt)

  • Blien, Uwe

    ()

    (Institute for Employment Research (IAB), Nuremberg)

  • Caliendo, Marco

    ()

    (University of Potsdam)

  • Zeiss, Christopher

    ()

    (Goethe University Frankfurt)

Abstract

Most evaluation studies of active labour market policies (ALMP) focus on the microeconometric evaluation approach using individual data. However, as the microeconometric approach usually ignores impacts on the non-participants, it should be seen as a first step to a complete evaluation which has to be followed by an analysis on the macroeconomic level. As a starting point for our analysis we discuss the effects of ALMP in a theoretical labour market framework augmented by ALMP. We estimate the impacts of ALMP in Germany for the time period 1999-2001 with regional data of 175 labour office districts. Due to the high persistence of German labour market data the application of a dynamic model is crucial. Furthermore our analysis accounts especially for the inherent simultaneity problem of ALMP. For West Germany we find positive effects of vocational training and job creation schemes on the labour market situation, whereas the results for East Germany do not allow profound statements.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 616.

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Length: 45 pages
Date of creation: Oct 2002
Publication status: published in: Carloeo, F.E. and Destefanis, S. (eds.): The European Labour Market - Regional Dimensions, Physica Verlag, 2006, 287-310
Handle: RePEc:iza:izadps:dp616
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Keywords: active labour market policy; dynamic panel data model; evaluation;

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Find related papers by JEL classification:
  • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
  • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
  • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
  • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
  • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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