What Works? A Meta Analysis of Recent Active Labor Market Program Evaluations

54 Pages Posted: 4 Sep 2015

See all articles by David Card

David Card

University of California, Berkeley - Department of Economics; Institute for the Study of Labor (IZA); National Bureau of Economic Research (NBER)

Jochen Kluve

RWI; Humboldt University of Berlin; IZA

Andrea Weber

Austrian Institute of Economic Research (WIFO); Vienna University of Economics and Business; Institute for the Study of Labor (IZA); CESifo (Center for Economic Studies and Ifo Institute)

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Abstract

We present a meta-analysis of impact estimates from over 200 recent econometric evaluations of active labor market programs from around the world. We classify estimates by program type and participant group, and distinguish between three different post-program time horizons.Using meta-analytic models for the effect size of a given estimate (for studies that model the probability of employment) and for the sign and significance of the estimate (for all the studies in our sample) we conclude that: (1) average impacts are close to zero in the short run, but become more positive 2-3 years after completion of the program; (2) the time profile of impacts varies by type of program, with larger gains for programs that emphasize human capital accumulation; (3) there is systematic heterogeneity across participant groups, with larger impacts for females and participants who enter from long term unemployment; (4) active labor market programs are more likely to show positive impacts in a recession.

Keywords: active labor market policy, program evaluation, meta-analysis

JEL Classification: J00, J68

Suggested Citation

Card, David E. and Kluve, Jochen and Kluve, Jochen and Weber, Andrea Michaela and Weber, Andrea Michaela, What Works? A Meta Analysis of Recent Active Labor Market Program Evaluations. IZA Discussion Paper No. 9236, Available at SSRN: https://ssrn.com/abstract=2655277 or http://dx.doi.org/10.2139/ssrn.2655277

David E. Card (Contact Author)

University of California, Berkeley - Department of Economics ( email )

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Institute for the Study of Labor (IZA)

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National Bureau of Economic Research (NBER)

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Jochen Kluve

RWI ( email )

Essen
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Humboldt University of Berlin ( email )

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IZA

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Andrea Michaela Weber

Austrian Institute of Economic Research (WIFO) ( email )

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Austria

Vienna University of Economics and Business ( email )

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Austria

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

CESifo (Center for Economic Studies and Ifo Institute)

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Munich, DE-81679
Germany

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