Does the Order and Timing of Active Labor Market Programs Matter?

This paper extends the traditional focus of active labor market policy evaluation from a static comparison of participation in a program versus nonparticipation (or participation in another program) to the evaluation of the effects of program sequences, i.e. multiple participation or timing of such programs. We use a dynamic evaluation framework that explicitly allows for dynamic selection into different stages of such sequences based on past intermediate outcomes to analyse multiple programs, the timing of programs, or the order of program. Such a demanding analysis is made possible by having available exceptionally comprehensive data of the Austrian workforce population. Our findings suggest that (i) active job search programs are more effective after a qualification program compared to the reverse order, that (ii) multiple participation in qualification measures dominates single participation, and that (iii) the effectiveness of specific labor market programs deteriorates the later they start.