A Critical Survey of Empirical Methods for Evaluating Active Labor Market Policies

Jeffrey Smith

Swiss Journal of Economics and Statistics (SJES), 2000, vol. 136, issue III, 247-268

Abstract: This paper considers different methods for solving the evaluation problem. I highlight the role of heterogeneity in program impacts in defining evaluation parameters of interest and in interpreting estimated program impacts. I discuss the strengths and weaknesses of social experiments and conclude that they require careful implementation and interpretation. I review and critique two popular non-experimental evaluation methods: difference-in-differences and propensity score matching. I find that the former relies on assumptions at odds with the empirical data and that the latter is not a magical solution to all evaluation problems. Finally, I argue for the importance of paying attention to data quality and general equilibrium effects.

Date: 2000
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Citations: View citations in EconPapers (115)

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Working Paper: A Critical Survey of Empirical Methods for Evaluating Active Labor Market Policies (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:ses:arsjes:2000-iii-2

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