Active Labor Market Policy Effects in a Dynamic Setting

15 Pages Posted: 1 Dec 2008

See all articles by Bruno Crepon

Bruno Crepon

National Institute of Statistics and Economic Studies (INSEE) - National School for Statistical and Economic Administration (ENSAE); IZA Institute of Labor Economics

Marc Ferracci

Université Paris-Est Marne la Vallée (UPEMLV); CREST-INSEE

Grégory Jolivet

University of Bristol

Gerard J. van den Berg

VU University Amsterdam - Department of Economics; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics; Tinbergen Institute

Abstract

This paper implements a method to identify and estimate treatment effects in a dynamic setting where treatments may occur at any point in time. By relating the standard matching approach to the timing-of-events approach, it demonstrates that effects of the treatment on the treated at a given date can be identified although non-treated may be treated later in time. The approach builds on a "no anticipation" assumption and the assumption of conditional independence between the duration until treatment and the counterfactual durations until exit. To illustrate the approach, the paper studies the effect of training for unemployed workers in France, using a rich register data set. Training has little impact on unemployment duration. The contamination of the standard matching estimator due to later entries into treatment is large if the treatment probability is high.

Keywords: propensity score, training, unemployment duration, program participation, treatment, matching, contamination bias

JEL Classification: J64, C21, C31, C41, C14

Suggested Citation

Crepon, Bruno and Ferracci, Marc and Jolivet, Grégory and van den Berg, Gerard J., Active Labor Market Policy Effects in a Dynamic Setting. IZA Discussion Paper No. 3848. Available at SSRN: https://ssrn.com/abstract=1309090 or http://dx.doi.org/10.1111/j.0042-7092.2007.00700.x

Bruno Crepon (Contact Author)

National Institute of Statistics and Economic Studies (INSEE) - National School for Statistical and Economic Administration (ENSAE) ( email )

92245 Malakoff Cedex
France

IZA Institute of Labor Economics

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

Marc Ferracci

Université Paris-Est Marne la Vallée (UPEMLV) ( email )

France

CREST-INSEE

18, Boulevard Adolphe-Pinard
92244 Malakoff Cedex
France

Grégory Jolivet

University of Bristol ( email )

University of Bristol,
Senate House, Tyndall Avenue
Bristol, BS8 ITH
United Kingdom

Gerard J. Van den Berg

VU University Amsterdam - Department of Economics ( email )

De Boelelaan 1105
1081 HV Amsterdam
Netherlands
+31 20 444 6132 (Phone)
+32 20 444 6020 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

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

Tinbergen Institute

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
42
Abstract Views
498
PlumX Metrics