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

33 Pages Posted: 5 Mar 2013

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

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Date Written: April 2013

Abstract

This study extends the traditional focus of active labour market policy evaluation from a static comparison of participation in a programme versus nonā€participation (or participation in another programme) to the evaluation of the effects of programme sequences, that is, multiple participation or timing of such programmes. Explicitly allowing for dynamic selection into different stages of such programme sequences we analyse multiple programmes, the timing of programmes, and the order of programmes. The analysis is based on comprehensive administrative 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, (ii) multiple participation in qualification measures dominates single participation and (iii) the effectiveness of several labour market programmes deteriorates the later they start during an unemployment spell.

JEL Classification: J68

Suggested Citation

Lechner, Michael and Wiehler, Stephan, Does the Order and Timing of Active Labour Market Programmes Matter? (April 2013). Oxford Bulletin of Economics and Statistics, Vol. 75, Issue 2, pp. 180-212, 2013, Available at SSRN: https://ssrn.com/abstract=2228537 or http://dx.doi.org/10.1111/obes.12007

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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