Disentangling Treatment Effects of Polish Active Labour Market Policies: Evidence from Matched Samples

46 Pages Posted: 2 May 2002

See all articles by Jochen Kluve

Jochen Kluve

Humboldt University of Berlin; RWI; IZA

Hartmut Lehmann

University of Bologna - School of Economics, Management, and Statistics; IZA Institute of Labor Economics

Christoph M. Schmidt

RWI - Leibniz-Insitut für Wirtschaftsforschung (RWI Essen); Ruhr-Universität Bochum (RUB); Institute for the Study of Labor (IZA); Centre for Economic Policy Research (CEPR)

Date Written: April 2002

Abstract

This Paper estimates causal effects of two Polish active labour market policies - Training and Intervention Works - on employment probabilities. Utilizing data from the 18th wave of the Polish Labor Force Survey we discuss three stages of an appropriately designed exact matching procedure. The approach is illustrated using the estimated propensity score as a summary measure of balance. Distributions of pre-treatment labour market status histories show the decisive relevance of employment indicators as determinants of programme participation - a point often ignored in evaluation research. We implement a conditional difference-in-differences estimator of treatment effects based on these individual trinomial sequences of pre-treatment labour market status. Our findings suggest that Training raises employment probability, while Intervention Works seems to lead to a negative treatment effect for men. Furthermore, we find that appropriate subdivision of the matched sample for conditional treatment effect estimation can add considerable insight to the interpretation of results.

Keywords: Active labour market policy, transition, exact matching, propensity score, determinants of programme participation

JEL Classification: C49, J68

Suggested Citation

Kluve, Jochen and Lehmann, Hartmut F. and Schmidt, Christoph M., Disentangling Treatment Effects of Polish Active Labour Market Policies: Evidence from Matched Samples (April 2002). Available at SSRN: https://ssrn.com/abstract=310476

Jochen Kluve (Contact Author)

Humboldt University of Berlin ( email )

Spandauer Str. 1
Berlin, D-10099
Germany

RWI ( email )

Essen
Germany

IZA

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

Hartmut F. Lehmann

University of Bologna - School of Economics, Management, and Statistics ( email )

Piazza Scaravilli 1
40126 Bologna, fc 47100
Italy

IZA Institute of Labor Economics

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

Christoph M. Schmidt

RWI - Leibniz-Insitut für Wirtschaftsforschung (RWI Essen) ( email )

Hohenzollernstraße 1-3
Essen, 45128
Germany
++49 201 8149-227 (Phone)
++49 201 8149-236 (Fax)

Ruhr-Universität Bochum (RUB)

GC 2/150
Universitätsstr. 150
D-44780 Bochum
Germany

Institute for the Study of Labor (IZA)

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

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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