A Microeconometric Evaluation of Active Labor Market Policy in Switzerland

55 Pages Posted: 30 Oct 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: October 2001

Abstract

In the second half of the 1990s Switzerland introduced an ambitious active labor market policy (ALMP) encompassing a variety of programs. We evaluate the effects of these programs on individual employment probability using unusually informative data originating from administrative records. Using a matching estimator for multiple programs, we find 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 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: C14, C40, H43, J64, J68

Suggested Citation

Gerfin, Michael and Lechner, Michael, A Microeconometric Evaluation of Active Labor Market Policy in Switzerland (October 2001). Available at SSRN: https://ssrn.com/abstract=287339

Michael Gerfin (Contact Author)

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

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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