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

Author

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  • 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.

Suggested Citation

  • Hujer, Reinhard & Blien, Uwe & Caliendo, Marco & Zeiss, Christopher, 2002. "Macroeconometric Evaluation of Active Labour Market Policies in Germany – A Dynamic Panel Approach Using Regional Data," IZA Discussion Papers 616, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp616
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    Cited by:

    1. Reinhard Hujer & Marco Caliendo, 2003. "Lohnsubventionen in Deutschland: wie sieht eine optimale Evaluierungsstrategie aus?," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 72(1), pages 109-123.
    2. Carlo Altavilla & Floro E. Caroleo, 2006. "Evaluating the Dynamic Effects of Active Labour Policies in Italy," LABOUR, CEIS, vol. 20(2), pages 349-382, June.
    3. Alessio Brown & Johannes Koettl, 2015. "Active labor market programs - employment gain or fiscal drain?," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-36, December.
    4. René Fahr & Uwe Sunde, 2009. "Did the Hartz Reforms Speed‐Up the Matching Process? A Macro‐Evaluation Using Empirical Matching Functions," German Economic Review, Verein für Socialpolitik, vol. 10(3), pages 284-316, August.
    5. Kluve, Jochen & Fertig, Michael & Jacobi, Lena & Nima, Leonhard & Schaffner, Sandra & Schmidt, Christoph M. & Card, David & Góra, Marek & Jensen, Peter & Leetmaa, Reelika & Patacchini, Eleonora & van , 2005. "Study on the effectiveness of ALMPs: Research project for the European Commission, DG Employment, Social Affairs and Equal Opportunities. Final report," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 69929, May.
    6. Fertig, Michael & Jacobi, Lena & Kluve, Jochen & Schaffner, Sandra & Schmidt, Christoph M. & Schumacher, Peter Michael & Tamm, Marcus & Apel, Helmut & Friedrich, Werner & Hägele, Helmut & Buscher, Her, 2006. "Evaluation der Umsetzung der Vorschläge der Hartz-Kommission. Arbeitspaket 1, Modul 1f. Teil 2: Benchmarking und makroökonomische Analysen," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 70876, May.
    7. Fertig, Michael & Kluve, Jochen & Schmidt, Christoph M., 2006. "Die makroökonomische Wirkung aktiver Arbeitsmarktpolitik : eine Panelanalyse auf Ebene regionaler Arbeitsmärkte (The macroeconomic impact of active labor market policy : a longitudinal analysis for re," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 39(3/4), pages 575-601.
    8. Michael Fertig, 2007. "The effectiveness of qualification measures for employed workers - an evaluation study for Saxony," Applied Economics, Taylor & Francis Journals, vol. 39(18), pages 2279-2301.
    9. Carlo Altavilla & Floro Ernesto Caroleo, 2013. "Asymmetric Effects of National-based Active Labour Market Policies," Regional Studies, Taylor & Francis Journals, vol. 47(9), pages 1482-1506, October.
    10. Zubović, Jovan & Simeunović, Ivana, 2012. "On the New Methodology of Cost‐Benefit Analysis of ALMP – The Case of Serbia," MPRA Paper 42532, University Library of Munich, Germany.
    11. Arntz, Melanie, 2005. "The Geographical Mobility of Unemployed Workers: Evidence from West Germany," ZEW Discussion Papers 05-34, ZEW - Leibniz Centre for European Economic Research.
    12. Iva Tomic, 2012. "The Efficiency of the Matching Process: Exploring the Impact of Regional Employment Offices in Croatia," Working Papers 1204, The Institute of Economics, Zagreb.
    13. Fertig, Michael & Kluve, Jochen & Schmidt, Christoph M., 2006. "Die makroökonomische Wirkung aktiver Arbeitsmarktpolitik : eine Panelanalyse auf Ebene regionaler Arbeitsmärkte (The macroeconomic impact of active labor market policy : a longitudinal analysis for re," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 39(3/4), pages 575-601.
    14. David C Maré, 2005. "Indirect Effects of Active Labour Market Policies," HEW 0509004, University Library of Munich, Germany.
    15. Jovan, Zubovic & Jonel, Subic, 2011. "Reviewing development of active labour market policies and the evaluation techniques," MPRA Paper 35282, University Library of Munich, Germany, revised 17 Oct 2011.
    16. Fertig, Michael & Kluve, Jochen & Schmidt, Christoph M., 2006. "Die makroökonomische Wirkung aktiver Arbeitsmarktpolitik : eine Panelanalyse auf Ebene regionaler Arbeitsmärkte (The macroeconomic impact of active labor market policy : a longitudinal analysis for re," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 39(3/4), pages 575-601.
    17. Konle-Seidl, Regina, 2005. "Lessons learned: Internationale Evaluierungsergebnisse zu Wirkungen aktiver und aktivierender Arbeitsmarktpolitik," IAB-Forschungsbericht 200509, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    18. Jacobi, Lena & Kluve, Jochen, 2006. "Before and After the Hartz Reforms: The Performance of Active Labour Market Policy in Germany," IZA Discussion Papers 2100, Institute of Labor Economics (IZA).
    19. Rosenfeld, Martin T. W. & Alecke, Björn & Franz, Peter & Heimpold, Gerhard & Kilper, Heiderose & Kunkel, Kirsten & Untiedt, Gerhard & Zillmer, Sabine, 2007. "Interregionale Ausgleichspolitik in Deutschland: Untersuchungen zu den Effekten ausgewählter Systeme zur Herstellung von "gleichwertigen Lebensverhältnissen"," IWH-Sonderhefte 2/2007, Halle Institute for Economic Research (IWH).
    20. Hagen, Tobias, 2003. "Three Approaches to the Evaluation of Active Labour Market Policy in East Germany Using Regional Data," ZEW Discussion Papers 03-27, ZEW - Leibniz Centre for European Economic Research.
    21. Hujer, Reinhard & Zeiss, Christopher, 2003. "Macroeconomic Impacts of ALMP on the Matching Process in West Germany," IZA Discussion Papers 915, Institute of Labor Economics (IZA).
    22. Blien, Uwe & Hirschenauer, Franziska & Phan thi Hong, Van, 2006. "Model-based classification of regional labour markets : for purposes of labour market policy," IAB-Discussion Paper 200629, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    23. Halit Basbuga & Hatip Kitapci, 2020. "The Effects of the Incentive for Young and Female Employment Regulated By Law No. 6111 and Macroeconomic Variables on Employment, Informal Employment, and," International Journal of Economics and Financial Issues, Econjournals, vol. 10(5), pages 178-186.
    24. Julia Bock-Schappelwein, 2005. "Chancen marginalisierter Personen zur Reintegration in den Arbeitsmarkt. Am Beispiel der EQUAL-Entwicklungspartnerschaft ida," WIFO Studies, WIFO, number 25786, June.

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    More about this item

    Keywords

    active labour market policy; dynamic panel data model; evaluation;
    All these keywords.

    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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