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

  • Hujer, Reinhard

    ()

    (Goethe University Frankfurt)

  • Blien, Uwe

    ()

    (Institute for Employment Research (IAB), Nuremberg)

  • Caliendo, Marco

    ()

    (University of Potsdam)

  • Zeiss, Christopher

    ()

    (Goethe University Frankfurt)

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
Date of revision:
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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  1. Pannenberg, Markus & Schwarze, Johannes, 1998. "Labor market slack and the wage curve," Economics Letters, Elsevier, vol. 58(3), pages 351-354, March.
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  9. Hujer, Reinhard & Caliendo, Marco, 2000. "Evaluation of Active Labour Market Policy: Methodological Concepts and Empirical Estimates," IZA Discussion Papers 236, Institute for the Study of Labor (IZA).
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  26. repec:hhs:iuiwop:429 is not listed on IDEAS
  27. Hujer, Reinhard & Wellner, Marc, 2000. "The Effects of Public Sector Sponsored Training on Individual Employment Performance in East Germany," IZA Discussion Papers 141, Institute for the Study of Labor (IZA).
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