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Macroeconometric evaluation of active labour market policies in Austria


  • Wolfgang Dauth


  • Reinhard Hujer
  • Katja Wolf


The analysis of active labour market policies (ALMP) at the macroeconomic level measures net effects on labour market outcomes. These net effects consist of direct treatment effects on participants as well as indirect effects on non-participants and on the economy as a whole, e.g. deadweight, substitution and displacement effects. This paper contributes to the empirical studies of macroeconometric evaluation of ALMP by considering the regional effects on both the matching process and the job-seeker rate. This joint view permits us to draw conclusions on how ALMP achieves the goals set by policy makers. To this end, we use an exclusive data set on Austrian job-seekers in the years 2001 to 2007 and employ contemporaneous GMM and quasi-ML estimators to take into account both the simultaneity of ALMP and spatial interrelations between employment office districts. The empirical results indicate that a large number of participants in job schemes in the non-profit sector, wage subsidies, and apprenticeships cause particularly favourable effects on the regional matching function and the job-seeker rate.

Suggested Citation

  • Wolfgang Dauth & Reinhard Hujer & Katja Wolf, 2011. "Macroeconometric evaluation of active labour market policies in Austria," ERSA conference papers ersa11p114, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa11p114

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    References listed on IDEAS

    1. Felix Buchel & Harminder Battu, 2003. "The Theory of Differential Overqualification: Does it Work?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 50(1), pages 1-16, February.
    2. Chiswick, Barry R. & Miller, Paul W., 2007. "The International Transferability of Immigrants’ Human Capital Skills," IZA Discussion Papers 2670, Institute for the Study of Labor (IZA).
    3. Chiswick, Barry R. & Miller, Paul W., 2009. "The international transferability of immigrants' human capital," Economics of Education Review, Elsevier, vol. 28(2), pages 162-169, April.
    4. Cohn, Elchanan & Khan, Shahina P., 1995. "The wage effects of overschooling revisited," Labour Economics, Elsevier, vol. 2(1), pages 67-76, March.
    5. Chiswick, Barry R., 2005. "High Skilled Immigration in the International Arena," IZA Discussion Papers 1782, Institute for the Study of Labor (IZA).
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    Cited by:

    1. 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.
    2. Rainer Eppel & Helmut Mahringer, 2013. "Do Wage Subsidies Work in Boosting Economic Inclusion? Evidence on Effect Heterogeneity in Austria," WIFO Working Papers 456, WIFO.
    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. Michael Stops, 2011. "Job Matching on non-separated Occupational Labour Markets," ERSA conference papers ersa11p372, European Regional Science Association.
    5. Escudero, Veronica, 2014. "Are active labour market policies effective in activating and integrating low-skilled individuals? An international comparison," MPRA Paper 55319, University Library of Munich, Germany.
    6. Michael Stops, 2014. "Job matching across occupational labour markets," Oxford Economic Papers, Oxford University Press, vol. 66(4), pages 940-958.
    7. Rainer Eppel & Helmut Mahringer, 2012. "Do wage subsidies work in boosting economic inclusion? Evidence on e," EcoMod2012 4065, EcoMod.
    8. repec:ilo:ilowps:487304 is not listed on IDEAS

    More about this item

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • 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

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