The Relative Effectiveness of Selected Active Labour Market Programmes and the Common Support Problem

35 Pages Posted: 19 Oct 2008

See all articles by Gesine Stephan

Gesine Stephan

Institute for Employment Research (IAB); University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg; IZA Institute of Labor Economics

Andre Pahnke

Government of the Federal Republic of Germany - Institute for Employment Research (IAB)

Abstract

For Germany, we analyse the (relative) effects of participation in several active labour market programmes on the employment prospects of participants. First, our results show that different matching algorithms result in different severe problems of common support. Second, we obtain favourable effects of participation in training programmes, which is not true for job creation schemes. Third, while lock-in effects are smaller for shorter programmes, long retraining shows mainly positive effects compared to shorter training at the end of the observation period. Fourth, participants in job creation schemes are too different from participants in training programmes to conduct a reliable comparison.

Keywords: evaluation of active labour market programmes, propensity score matching, common support problem

JEL Classification: J68, J64, J65

Suggested Citation

Stephan, Gesine and Pahnke, Andre, The Relative Effectiveness of Selected Active Labour Market Programmes and the Common Support Problem. IZA Discussion Paper No. 3767. Available at SSRN: https://ssrn.com/abstract=1286725 or http://dx.doi.org/10.1111/j.0042-7092.2007.00700.x

Gesine Stephan (Contact Author)

Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg ( email )

Lange Gasse 20
Nuremberg, 90403
Germany

IZA Institute of Labor Economics

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

Andre Pahnke

Government of the Federal Republic of Germany - Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

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