Three Approaches to the Evaluation of Active Labour Market Policy in East Germany Using Regional Data


Hagen, Tobias


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URL: http://ub-madoc.bib.uni-mannheim.de/177
URN: urn:nbn:de:bsz:180-madoc-1775
Document Type: Working paper
Year of publication: 2003
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: C33 E24 H43 J68 ,
Subject headings (SWD): Evaluation, Arbeitsmarktpolitik
Abstract: Using different regional data sources for East Germany the three largest active labour market policy (ALMP) programmes job creation schemes (JCS), structural adjustment schemes (SAS) and public training (PT) are evaluated. After addressing the regional allocation rule of the funding of ALMPs and the fundamental simultaneity problem in macroeconomic evaluation studies, identification strategies and possible instrumental variables are discussed. Three different approaches based on different econometric techniques for panel data (GMM and two-stage least squares) are applied. An augmented matching function indicates a negative effect of JCS on regional matching efficiency (inflows into regular employment) and no significant effects of PT and SAS. A reduced form approach based on the Beveridge curve does not indicate any long-term effects of ALMPs on regional job seeker rates. A dynamic labour demand estimation indicates that PT has no effects on employment and JCS leads to displacement of regular employment.
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Hagen, Tobias (2003) Three Approaches to the Evaluation of Active Labour Market Policy in East Germany Using Regional Data. Open Access [Working paper]
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