Macroeconometric Evaluation of Active Labour Market Policies in Germany. A Dynamic Panel Approach Using Regional Data

Reinhard Hujer, Uwe Blien (), Marco Caliendo and Christopher Zeiss
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Reinhard Hujer: University of Frankfurt
Christopher Zeiss: University of Frankfurt

Chapter 14 in The European Labour Market. Regional Dimensions, 2006, pp 287-309 from AIEL - Associazione Italiana Economisti del Lavoro

Abstract: Most evaluation studies of active labour market policies (ALMP) focus on the micro-econometric evaluation approach using individual data. However, as the microeconometric approach usually ignores impacts on the non-participants, it should be seen as a first step to a complete evaluation which has to be followed by an analysis on the macroeconomic level. As a starting point for our analysis we discuss the effects of ALMP in a theoretical labour market framework augmented by ALMP. We estimate the impacts of ALMP in Germany for the time period 1999-2001 with regional data of 175 labour office districts. Due to the high persistence of German labour market data the application of a dynamic model is crucial. Furthermore our analysis accounts especially for the inherent simultaneity problem of ALMP. For West Germany we find positive effects of vocational training and job creation schemes on the labour market situation, whereas the results for East Germany do not allow profound statements.

Keywords: evaluation; active labour market policy; dynamic panel data model. (search for similar items in EconPapers)
JEL-codes: C33 E24 H43 J64 J68 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (18)

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Chapter: Macroeconometric Evaluation of Active Labour Market Policies in Germany. A Dynamic Panel Approach Using Regional Data (2006)
Working Paper: Macroeconometric Evaluation of Active Labour Market Policies in Germany – A Dynamic Panel Approach Using Regional Data (2002)
Working Paper: Macroeconometric evaluation of active labour market policies in Germany - a dynamic panel approach using regional data (2002)
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