Heterogeneous Employment Effects of Job Search Programmes: A Machine Learning Approach

78 Pages Posted: 21 Aug 2017

See all articles by Michael Knaus

Michael Knaus

University of St. Gallen

Michael Lechner

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

Anthony Strittmatter

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

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Date Written: August 16, 2017

Abstract

We systematically investigate the effect heterogeneity of job search programmes for unemployed workers. To investigate possibly heterogeneous employment effects, we combine non-experimental causal empirical models with Lasso-type estimators. The empirical analyses are based on rich administrative data from Swiss social security records. We find considerable heterogeneities only during the first six months after the start of training. Consistent with previous results of the literature, unemployed persons with fewer employment opportunities profit more from participating in these programmes. Furthermore, we also document heterogeneous employment effects by residence status. Finally, we show the potential of easy-to-implement programme participation rules for improving average employment effects of these active labour market programmes.

Keywords: Machine learning, individualized treatment effects, conditional average treatment effects, active labour market policy

JEL Classification: J68, H43, C21

Suggested Citation

Knaus, Michael and Lechner, Michael and Strittmatter, Anthony, Heterogeneous Employment Effects of Job Search Programmes: A Machine Learning Approach (August 16, 2017). Available at SSRN: https://ssrn.com/abstract=3020462 or http://dx.doi.org/10.2139/ssrn.3020462

Michael Knaus

University of St. Gallen ( email )

Varnbuelstr. 14
Saint Gallen, St. Gallen CH-9000
Switzerland

Michael Lechner

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

Varnbuelstrasse 14
St. Gallen, 9000
Switzerland
+41 71 224 2320 (Phone)

Anthony Strittmatter (Contact Author)

University of St. Gallen - Swiss Institute for Empirical Economic Research (SEW) ( email )

Varnbuelstrasse 14
St. Gallen, 9000
Switzerland

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