Econometric Evaluation of Labour Market Policies


Book Description

Empirical measurement of impacts of active labour market programmes has started to become a central task of economic researchers. New improved econometric methods have been developed that will probably influence future empirical work in various other fields of economics as well. This volume contains a selection of original papers addressing these econometric issues at the theoretical and empirical level. The theoretical part contains papers on tight bounds of average treatments effects, instrumental variables estimators, impact measurement with multiple programme options and statistical profiling. The empirical part provides the reader with econometric evaluations of active labour market programmes in Canada, Germany, France, Italy, Slovak Republic and Sweden.




Microeconometric Evaluation of Labour Market Policies


Book Description

Provides an overview of the microeconometric evaluation methods for evaluation of labour market and other public policies. This book focuses on the propensity score matching method and gives guidance for its implementation. It uses this method to evaluate the employment effects of job creation schemes on the participating individuals in Germany.




Do Active Labor Market Policies Increase Employment?


Book Description

Using panel data for 15 industrial countries, active labor market policies (ALMPs) are shown to have raised employment rates in the business sector in the 1990s, after controlling for many institutions, country-specific effects, and economic variables. Among such policies, direct subsidies to job creation were the most effective. ALMPs also affected employment rates by reducing real wages below levels allowed by technological growth, changes in the unemployment rate, and institutional and other economic factors. However, part of this wage moderation may be linked to a composition effect because policies were targeted to low-paid individuals. Whether ALMPs are cost-effective from a budgetary perspective remains to be determined, but they are certainly not substitutes for comprehensive institutional reforms.




Active Labor Market Policy Evaluations


Book Description

This paper presents a meta-analysis of recent microeconometric evaluations of active labor market policies. Our sample contains 199 separate "program estimates"--Estimates of the impact of a particular program on a specific subgroup of participants - drawn from 97 studies conducted between 1995 and 2007. For about one-half of the sample we have both a short-term program estimate (for a one-year post-program horizon) and a medium- or long-term estimate (for 2 or 3 year horizons). We categorize the estimated post-program impacts as significantly positive, insignificant, or significantly negative. By this criterion we find that job search assistance programs are more likely to yield positive impacts, whereas public sector employment programs are less likely. Classroom and on-the-job training programs yield relatively positive impacts in the medium term, although in the short-term these programs often have insignificant or negative impacts. We also find that the outcome variable used to measure program impact matters. In particular, studies based on registered unemployment are more likely to yield positive program impacts than those based on other outcomes (like employment or earnings). On the other hand, neither the publication status of a study nor the use of a randomized design is related to the sign or significance of the corresponding program estimate. Finally, we use a subset of studies that focus on post-program employment to compare meta-analytic models for the "effect size" of a program estimate with models for the sign and significance of the estimated program effect. We find that the two approaches lead to very similar conclusions about the determinants of program impact.













Three Essays in Microeconometrics


Book Description

This PhD dissertation discusses three important topics in labor economics. It consists of three chapters that inquire into the integration of migrants and their socioeconomic outcomes in the host country market by relying on an empirical framework combined with economic theory. The first chapter explores whether naturalization leads to faster occupational assimilation for immigrants in the labor market in Germany. In particular, the empirical analysis in this paper investigates whether immigrants become occupationally more mobile after naturalization and if this leads to better jobs in the labor market. Instrumental variable estimation is exploited to control for the time-invariant and -variant unobserved individual characteristics. In order to do so, changes in German immigration law in the 1990s is used as an instrument for naturalization. The results show that naturalization is not associated with an immediate increase in occupational mobility. Instead, the years following naturalization are associated with higher occupational mobility, which implies that immigrants use naturalization in the German labor market to pursue better occupation match and faster occupational assimilation. The second chapter exploits the September 11 as an exogenous event to explore whether September 11 decreased the exit rate from unemployment of immigrants from Muslim countries in the UK labor market. The empirical analysis exploits discrete time duration models. The results show that the exit rate from unemployment to paid employment decreases after the September 11 terrorist attacks for immigrants from Muslim countries compared to UK-born white population with similar socioeconomic characteristics. Moreover, a significant increase in the unemployment spell is found for the first generation immigrants from Muslim countries while no impact is found on second generation immigrants. The last chapter addresses issues related to religious identity which have been questioned more intensively in recent years. The first part of the empirical analysis answers the question about the extent to which religious identity is transmitted from one generation to the next by using longitudinal data from Germany. In addition, the empirical analysis investigates how socio-economic characteristics influence the transmission of religious traits across generations. Furthermore, the paper explores whether migration background plays a role in the transmission process. The results show that parents play an important role in the development of the religious identity of their children in Germany. The transmission or religious traits across generations varies according to the socio-economic characteristics of transmitter and religious groups. Finally, the empirical research shows that migration background is an important factor in the transmission process. The results reveal that vertical transmission is higher among immigrant families by using data from Indonesia and Turkey.