Active Labor Market Policy Effects in a Dynamic Setting

Bruno Crépon (), Marc Ferracci (), Grégory Jolivet () and Gerard J. van den Berg
Additional contact information
Bruno Crépon: CREST-INSEE
Marc Ferracci: CREST-INSEE
Grégory Jolivet: University of Bristol

No 3848, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: This paper implements a method to identify and estimate treatment effects in a dynamic setting where treatments may occur at any point in time. By relating the standard matching approach to the timing-of-events approach, it demonstrates that effects of the treatment on the treated at a given date can be identified even though non-treated may be treated later in time. The approach builds on a "no anticipation" assumption and the assumption of conditional independence between the duration until treatment and the counterfactual durations until exit. To illustrate the approach, the paper studies the effect of training for unemployed workers in France, using a rich register data set. Training has little impact on unemployment duration. The contamination of the standard matching estimator due to later entries into treatment is large if the treatment probability is high.

Keywords: treatment; program participation; unemployment duration; matching; training; propensity score; contamination bias (search for similar items in EconPapers)
JEL-codes: J64 C21 C31 C41 C14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ecm and nep-lab
Date: 2008-11
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Related works:
Working Paper: Active labor market policy effects in a dynamic setting (2009)
Journal Article: Active Labor Market Policy Effects in a Dynamic Setting (2009)
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