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Exploiting Regional Treatment Intensity for the Evaluation of Labour Market Policies

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
   
type journal paper
   
keywords local average treatment effect, conditional local IV, active labour market policy, state borders, geographic location, Switzerland, Fuller estimator
   
language English
kind of paper journal article
date of appearance 1-9-2010
journal The Journal of the American Statistical Association
publisher American Statistical Association (Alexandria, Virginia (USA))
ISSN 0162-1459
ISSN (online) 1537-274X
DOI 10.1198/jasa.2010.ap08148
volume of journal 105
number of issue 491
page(s) 1014-1029
review blind review
   
citation Froelich, M., & Lechner, M. (2010). Exploiting Regional Treatment Intensity for the Evaluation of Labour Market Policies. The Journal of the American Statistical Association, 105(491), 1014-1029, DOI:10.1198/jasa.2010.ap08148.