Microeconometric Evaluation of the Active Labour Market Policy in Switzerland

Swiss Institute for International Economics and Applied Economic Research Working Paper No. 2000-10

Posted: 31 Jul 2000

See all articles by Michael Gerfin

Michael Gerfin

University of Bern; IZA Institute of Labor Economics

Michael Lechner

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

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Abstract

In the second part of the 1990's Switzerland conducted an ambitious active labour market policy (ALMP) encompassing a wide variety of programmes. We evaluate the effects of these programmes on the individual employment probability of potential participants. Our econometric analysis uses unusually informative data origi-nating from administrative unemployment and social security records. We apply a matching estimator adapted for the case of multiple programmes. We find substantial positive effects for one particular programme that is a unique feature of the Swiss ALMP. It consists of a wage subsidy for temporary jobs in the regular labour market that would otherwise not be taken up by the unemployed. We also find large negative effects for traditional employment programmes oper-ated in sheltered labour markets. For training courses the results are mixed.

Keywords: Unemployment, Swiss labour market, evaluation of multiple programmes, treatment effects, balancing score, matching.

JEL Classification: J64, J68, H43, C14, C40

Suggested Citation

Gerfin, Michael and Lechner, Michael, Microeconometric Evaluation of the Active Labour Market Policy in Switzerland. Swiss Institute for International Economics and Applied Economic Research Working Paper No. 2000-10 , Available at SSRN: https://ssrn.com/abstract=232916

Michael Gerfin

University of Bern ( email )

CH-3012 Bern
Switzerland
+41 31 631 4092 (Phone)

IZA Institute of Labor Economics

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

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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