Programme Heterogeneity and Propensity Score Matching: An Application to the Evaluation of Active Labour Market Policies

Univ. of St. Galen Dept. of Economics Discussion Paper No. 2000-01

41 Pages Posted: 18 Nov 2000

See all articles by Michael Lechner

Michael Lechner

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

Date Written: January 6, 2000

Abstract

This paper investigates the question whether it really matters for microeconometric evaluation studies to take account of the fact that the programmes under consideration are heterogeneous. Assuming that selection into the different sub-programmes and the potential outcomes are independent given observable characteristics, estimators based on different propensity scores are compared and applied to the analysis of the active labour market policy in a Swiss region. Furthermore, the issues of heterogeneous effects and aggregation are addressed. The econometric considerations as well as the results of the application suggest that an approach that incorporates the possibility of having multiple programmes could be an important tool in applied work.

Keywords: Multiple programmes, programme evaluation, treatment effects, balancing score, matching

JEL Classification: C10, C50, J60, J68

Suggested Citation

Lechner, Michael, Programme Heterogeneity and Propensity Score Matching: An Application to the Evaluation of Active Labour Market Policies (January 6, 2000). Univ. of St. Galen Dept. of Economics Discussion Paper No. 2000-01, Available at SSRN: https://ssrn.com/abstract=229518 or http://dx.doi.org/10.2139/ssrn.229518

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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