An Evaluation of Public Employment Programmes in the East German State of Sachsen-Anhalt

University of St. Gallen Discussion Paper No. 9815

52 Pages Posted: 17 May 1999

See all articles by Martin Eichler

Martin Eichler

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

Michael Lechner

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

Date Written: November 1998

Abstract

In East Germany, active labor market policies (ALMPs) are used on a large scale to contain fast rising unemployment after unification. This paper evaluates the effects for participants in public employment programmes (PEPs), that are an important part of ALMPs. It focuses on individual unemployment probabilities. By concentrating on the state of Sachsen-Anhalt, the econometric analysis can use a new and large panel, the Arbeitsmarktmonitor Sachsen-Anhalt. We aim at nonparametric identification of the effects of PEPs by combining control group comparisons with differencing over time to correct for selection effects. Our results indicate that PEP participation reduces the unemployment risk of the participants.

JEL Classification: C14, C23, H43, J64, J68

Suggested Citation

Eichler, Martin and Lechner, Michael, An Evaluation of Public Employment Programmes in the East German State of Sachsen-Anhalt (November 1998). University of St. Gallen Discussion Paper No. 9815, Available at SSRN: https://ssrn.com/abstract=143949 or http://dx.doi.org/10.2139/ssrn.143949

Martin Eichler

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

Dufourstr. 48
St. Gallen, 9000
Switzerland
41 71 224 2298 (Fax)

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)

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