Microeconometric Evaluation of the Active Labor Market Policy in Switzerland

University of St. Gallen Discussion Paper No. 2000-10

Posted: 22 Jun 2001

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

Date Written: 2000

Abstract

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

Keywords: Unemployment, Swiss labor market, evaluation of multiple programs, treatment effects, balancing score, matching

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

Suggested Citation

Gerfin, Michael and Lechner, Michael, Microeconometric Evaluation of the Active Labor Market Policy in Switzerland (2000). University of St. Gallen Discussion Paper No. 2000-10, Available at SSRN: https://ssrn.com/abstract=237859

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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