Evaluating the Impact of an Active Labour Market Policy on Employment: Short- and Long-Term Perspectives

José M. Cansino, Antonio Sánchez-Braza and Nereyda Espinoza
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José M. Cansino: Department of Economic Analysis and Political Economy, Faculty of Economics and Business Sciences, Universidad de Sevilla, Ramón y Cajal 1, 41018 Seville, Spain
Antonio Sánchez-Braza: Department of Economic Analysis and Political Economy, Faculty of Economics and Business Sciences, Universidad de Sevilla, Ramón y Cajal 1, 41018 Seville, Spain
Nereyda Espinoza: Faculty of Social and Humanistic Sciences, Higher Polytechnic School of the Littoral, Santiago de Guayaquil, Ecuador

Social Sciences, 2018, vol. 7, issue 4, 1-20

Abstract: The Labour Market Insertion Contract was an Active Labour Market Policy introduced in Spain. It was aimed at individuals who had difficulties entering the labour market, and it was introduced with the purpose of reducing the rate of unemployment. This article provides an estimation of the average impact that this contract had on the employability of individuals in the short and long term. A microeconomic analysis was carried out based on causal statistical inference by using propensity score matching and kernel and radial estimators. Data was taken from the most comprehensive database available, which is the Continuous Sample of Work Histories. Results are consistent with literature reports and show that the employability of participants was inferior to that of individuals with similar, temporary-type contracts. This research contributes to the literature by evaluating whether there was empirical evidence to support the political decision to revoke or replace this kind of direct employment programme.

Keywords: Active Labour Market Policies; public policy evaluation; propensity score matching; kernel and radial matching estimators; causal inference (search for similar items in EconPapers)
JEL-codes: A B N P Y80 Z00 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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