Exploiting regional treatment intensity for the evaluation of labour market policies

Markus Frölich () and Michael Lechner

No CWP11/06, CeMMAP working papers from Centre for Microdata Methods and Practice, Institute for Fiscal Studies

Abstract: We estimate the effects of active labour market policies (ALMP) on subsequent employment by nonparametric instrumental variables and matching estimators. Very informative administrative Swiss data with detailed regional information are combined with exogenous regional variation in programme participation probabilities, which generate an instrument within well-defined local labour markets. This allows pursuing instrumental variable as well as matching estimation strategies. A specific combination of those methods identifies a new type of effect heterogeneity. We find that ALMP increases individual employment probabilities by about 15% in the short term for unemployed that may be called 'marginal' participants. The effects seem to be considerably smaller for those unemployed not marginal to the participation decision.

Keywords: local average treatment effect; conditional local IV; active labour market policy; state borders; geographic variation; Switzerland; Fuller estimator (search for similar items in EconPapers)
JEL-codes: C14 C21 J68 (search for similar items in EconPapers)
Date: 2006-06-10
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Citations: View citations in EconPapers (15)

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Related works:
Journal Article: Exploiting Regional Treatment Intensity for the Evaluation of Labor Market Policies (2010)
Working Paper: Exploiting Regional Treatment Intensity for the Evaluation of Labour Market Policies (2006)
Working Paper: Exploiting Regional Treatment Intensity for the Evaluation of Labour Market Policies (2006)
Working Paper: Exploiting regional treatment intensity for the evaluation of labour market policies (2006)
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