Does the Order and Timing of Active Labour Market Programmes Matter?

36 Pages Posted: 5 Jun 2008

See all articles by Michael Lechner

Michael Lechner

University of St. Gallen - Swiss Institute for Empirical Economic Research

Stephan Wiehler

University of St. Gallen - Swiss Institute for International Economics and Applied Economic Research

Multiple version iconThere are 2 versions of this paper

Date Written: October 2007

Abstract

This paper extends the traditional focus of active labour market policy evaluation from a static comparison of participation in a programme versus nonparticipation (or participation in another programme) to the evaluation of the effects of programme sequences, i.e. multiple participation or timing of such programmes. We use a dynamic evaluation framework that explicitly allows for dynamic selection into different stages of such sequences based on past intermediate outcomes to analyze multiple programmes, the timing of programmes, and the order of programmes. The analysis is based on exceptionally comprehensive data on the Austrian labour force. Our findings suggest that (i) active job search programmes are more effective after a qualification programme compared to the reverse order, that (ii) multiple participations in qualification measures dominates single participation, and that (iii) the effectiveness of specific labour market programmes deteriorates the later they start during an unemployment spell.

Keywords: Active Labour market policy, matching estimation, panel data, programme evaluation

JEL Classification: J68

Suggested Citation

Lechner, Michael and Wiehler, Stephan, Does the Order and Timing of Active Labour Market Programmes Matter? (October 2007). CEPR Discussion Paper No. DP6521, Available at SSRN: https://ssrn.com/abstract=1140048

Michael Lechner (Contact Author)

University of St. Gallen - Swiss Institute for Empirical Economic Research ( email )

Varnbuelstrasse 14
St. Gallen, 9000
Switzerland
+41 71 224 2320 (Phone)

Stephan Wiehler

University of St. Gallen - Swiss Institute for International Economics and Applied Economic Research ( email )

Dufourstr. 48
St. Gallen, 9000
Switzerland

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