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Three Approaches to the Evaluation of Active Labour Market Policy in East Germany Using Regional Data

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  • Hagen, Tobias

Abstract

Using different regional data sources for East Germany the three largest active labour market policy (ALMP) programmes – job creation schemes (JCS), structural adjustment schemes (SAS) and public training (PT) – are evaluated. After addressing the regional allocation rule of the funding of ALMPs and the fundamental simultaneity problem in macroeconomic evaluation studies, identification strategies and possible instrumental variables are discussed. Three different approaches based on different econometric techniques for panel data (GMM and two-stage least squares) are applied. An augmented matching function indicates a negative effect of JCS on regional matching efficiency (inflows into regular employment) and no significant effects of PT and SAS. A reduced form approach based on the Beveridge curve does not indicate any long-term effects of ALMPs on regional job seeker rates. A dynamic labour demand estimation indicates that PT has no effects on employment and JCS leads to displacement of regular employment.

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  • 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 - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  • Handle: RePEc:zbw:zewdip:1021
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    Cited by:

    1. Suárez Cano, Patricia & Mayor Fernández, Matías & Cueto Iglesias, Begoña, 2011. "How important is access to employment offices in Spain? An urban and non-urban perspective," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 21, pages 119-140.
    2. Joanna TYROWICZ & Piotr W�JCIK, 2009. "Some Remarks On The Effects Of Active Labour Market Policies In Post-Transition," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 4(2(8)_ Sum).
    3. Jekaterina Dmitrijeva & Mihails Hazans, 2007. "A Stock-Flow Matching Approach to Evaluation of Public Training Programme in a High Unemployment Environment," LABOUR, CEIS, vol. 21(3), pages 503-540, September.
    4. 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.
    5. Hohendanner Christian, 2011. "Ein-Euro-Jobs und reguläre Beschäftigung / One-Euro-Jobs and Regular Employment: Eine Analyse potenzieller Substitutionseffekte mit Daten des IAB-Betriebspanels / An Analysis of Potential Substitution," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 231(2), pages 210-246, April.
    6. repec:iab:iabzaf:v:39:i:3/4:p:575-601 is not listed on IDEAS
    7. Joanna Tyrowicz & Tomasz Jeruzalski, 2013. "(In)Efficiency of matching: the case of a post-transition economy," Economic Change and Restructuring, Springer, vol. 46(2), pages 255-275, May.
    8. Iva Tomić, 2014. "Regional matching (in)efficiency on the Croatian labour market," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 64(3), pages 287-312, September.
    9. David C Maré, 2005. "Indirect Effects of Active Labour Market Policies," HEW 0509004, EconWPA.
    10. 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.
    11. 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.
    12. Tangian, Andranik S., 2005. "Composite indicator of German regional policy and its use for optimizing subsidies to regional labour markets," WSI Working Papers 138, The Institute of Economic and Social Research (WSI), Hans-Böckler-Foundation.
    13. Uwe Blien & Franziska Hirschenauer & Phan thi Hong Van, 2010. "Classification of regional labour markets for purposes of labour market policy," Papers in Regional Science, Wiley Blackwell, vol. 89(4), pages 859-880, November.
    14. 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 for the Study of Labor (IZA).
    15. Jacobi, Lena & Kluve, Jochen, 2007. "Before and after the Hartz reforms: The performance of active labour market policy in Germany," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(1), pages 45-64.
    16. 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).
    17. Hujer, Reinhard & Zeiss, Christopher, 2003. "Macroeconomic Impacts of ALMP on the Matching Process in West Germany," IZA Discussion Papers 915, Institute for the Study of Labor (IZA).
    18. 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].
    19. repec:iab:iabzaf:v:37:i:2:p:146-175 is not listed on IDEAS
    20. repec:iab:iabzaf:v:40:i:1:p:45-64 is not listed on IDEAS
    21. Blien, Uwe & Hirschenauer, Franziska & Arendt, Manfred & Braun, Hans Jürgen & Gunst, Dieter-Michael & Kilcioglu, Sibel & Kleinschmidt, Helmut & Musati, Martina & Roß, Hermann & Vollkommer, Dieter & We, 2004. "Typisierung von Bezirken der Agenturen für Arbeit (Classification of employment office areas)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 37(2), pages 146-175.

    More about this item

    Keywords

    Evaluation; Active Labour Market Policy; Identification; Regional Data; Matching Efficiency; Crowding-out;

    JEL classification:

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

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