Macroeconometric Evaluation of Active Labour Market Policies in Germany - a Dynamic Panel Approach Using Regional Data

44 Pages Posted: 11 Nov 2002

See all articles by Reinhard Hujer

Reinhard Hujer

University of Frankfurt; IZA Institute of Labor Economics

Uwe Blien

Institute for Employment Research (IAB); IZA Institute of Labor Economics

Marco Caliendo

University of Potsdam; Institute for the Study of Labor (IZA)

Christopher Zeiss

University of Frankfurt - Economics and Business Administration Area

Date Written: October 2002

Abstract

Most evaluation studies of active labour market policies (ALMP) focus on the microeconometric evaluation approach using individual data. However, as the microeconometric approach usually ignores impacts on the non-participants, it should be seen as a first step to a complete evaluation which has to be followed by an analysis on the macroeconomic level. As a starting point for our analysis we discuss the effects of ALMP in a theoretical labour market framework augmented by ALMP. We estimate the impacts of ALMP in Germany for the time period 1999-2001 with regional data of 175 labour office districts. Due to the high persistence of German labour market data the application of a dynamic model is crucial. Furthermore our analysis accounts especially for the inherent simultaneity problem of ALMP. For West Germany we find positive effects of vocational training and job creation schemes on the labour market situation, whereas the results for East Germany do not allow profound statements.

Keywords: Evaluation, Active Labour Market Policy, Dynamic Panel Data Model

JEL Classification: C33, E24, H43, J64, J68

Suggested Citation

Hujer, Reinhard and Blien, Uwe and Caliendo, Marco and Zeiss, Christopher, Macroeconometric Evaluation of Active Labour Market Policies in Germany - a Dynamic Panel Approach Using Regional Data (October 2002). IZA Discussion Paper No. 616. Available at SSRN: https://ssrn.com/abstract=343920

Reinhard Hujer (Contact Author)

University of Frankfurt ( email )

Institute for Statistics and Econometrics
60054 Frankfurt
Germany
+49 798 23673 (Fax)

IZA Institute of Labor Economics

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

Uwe Blien

Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

IZA Institute of Labor Economics

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

Marco Caliendo

University of Potsdam ( email )

August-Bebel Strasse 89
Potsdam, 14482
Germany
+49(0)331/9773225 (Phone)
+49(0)331/9773210 (Fax)

HOME PAGE: http://www.uni-potsdam.de/en/empwifo/news.html

Institute for the Study of Labor (IZA) ( email )

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

Christopher Zeiss

University of Frankfurt - Economics and Business Administration Area ( email )

P.O. Box 11 19 32
Mertonstrasse 17
60054 Frankfurt
Germany
+49 (0) 69 798 28345 (Phone)
+49 (0) 69 798 23673 (Fax)

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