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Does the Order and Timing of Active Labor Market Programs Matter?

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  • Michael Lechner
  • Stephan Wiehler

Abstract

This paper extends the traditional focus of active labor market policy evaluation from a static comparison of participation in a program versus nonparticipation (or participation in another program) to the evaluation of the effects of program sequences, i.e. multiple participation or timing of such programs. We use a dynamic evaluation framework that explicitly allows for dynamic selection into different stages of such sequences based on past intermediate outcomes to analyze multiple programs, the timing of programs, and the order of programs. The analysis is based on exceptionally comprehensive data on the Austrian labor force. Our findings suggest that (i) active job search programs are more effective after a qualification program compared to the reverse order, that (ii) multiple participations in qualification measures dominates single participation, and that (iii) the effectiveness of specific labor market programs deteriorates the later they start during an unemployment spell.

Suggested Citation

  • Michael Lechner & Stephan Wiehler, 2007. "Does the Order and Timing of Active Labor Market Programs Matter?," University of St. Gallen Department of Economics working paper series 2007 2007-38, Department of Economics, University of St. Gallen.
  • Handle: RePEc:usg:dp2007:2007-38
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    Cited by:

    1. Kluve, Jochen & Lehmann, Hartmut & Schmidt, Christoph M., 2008. "Disentangling Treatment Effects of Active Labor Market Policies: The Role of Labor Force Status Sequences," Labour Economics, Elsevier, vol. 15(6), pages 1270-1295, December.
    2. Ramos, Raul & Surinach, Jordi & Artís, Manuel, 2009. "The Effectiveness of Regional Active Labour Market Policies to Fight against Unemployment: An Analysis for Catalonia," IZA Discussion Papers 4649, Institute of Labor Economics (IZA).
    3. Johannes Schweighofer, 2013. "Erzielen die Programme der aktiven Arbeitsmarktpolitik in Österreich ihre beabsichtigten Wirkungen?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 120, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    4. Dengler, Katharina & Hohmeyer, Katrin, 2010. "Maßnahmesequenzen im SGB II : eine deskriptive Analyse (Measure sequences in Book II of the Social Code)," IAB-Forschungsbericht 201008, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Lechner, Michael & Wunsch, Conny, 2013. "Sensitivity of matching-based program evaluations to the availability of control variables," Labour Economics, Elsevier, vol. 21(C), pages 111-121.
    6. Westlie, Lars, 2008. "Norwegian Vocational Rehabilitation Programs: Improving Employability and Preventing Disability?," Memorandum 24/2008, Oslo University, Department of Economics.
    7. Stephan Gesine, 2008. "The Effects of Active Labor Market Programs in Germany: An Investigation Using Different Definitions of Non-Treatment," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 228(5-6), pages 586-611, October.
    8. Thorsten Stromback, 2010. "Earnings, Schooling and Vocational Education and Training," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 13(3), pages 241-263.
    9. Lucia Svabova & Katarina Kramarova, 2022. "Allowance for School Graduate Practice Performance in Slovakia: Impact Evaluation of the Intervention," Mathematics, MDPI, vol. 10(9), pages 1-27, April.
    10. Dengler, Katharina, 2013. "Effectiveness of sequences of One-Euro-Jobs : is it better to do more One-Euro-Jobs or to wait?," IAB-Discussion Paper 201316, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    11. Moczall, Andreas, 2013. "Subsidies for substitutes? : New evidence on deadweight loss and substitution effects of a wage subsidy for hard-to-place job-seekers," IAB-Discussion Paper 201305, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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    More about this item

    Keywords

    Active Labor market policy; matching estimation; program evaluation; panel data;
    All these keywords.

    JEL classification:

    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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