Exploiting Regional Treatment Intensity for the Evaluation of Labour Market Policies
Journal
The Journal of the American Statistical Association
ISSN
0162-1459
ISSN-Digital
1537-274X
Type
journal article
Date Issued
2010-09-01
Author(s)
Froelich, Markus
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
Language
English
Keywords
local average treatment effect
conditional local IV
active labour market policy
state borders
geographic location
Switzerland
Fuller estimator
HSG Classification
not classified
Refereed
Yes
Publisher
American Statistical Association
Publisher place
Alexandria, Virginia (USA)
Volume
105
Number
491
Start page
1014
End page
1029
Pages
16
Subject(s)
Eprints ID
33955
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