Microeconometric Evaluation of the Active Labor Market Policy in Switzerland
University of St. Gallen Discussion Paper No. 2000-10
Posted: 22 Jun 2001
Date Written: 2000
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
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