Macroeconomic Impacts of Almp on the Matching Process in West Germany

23 Pages Posted: 24 Nov 2003

See all articles by Reinhard Hujer

Reinhard Hujer

University of Frankfurt; IZA Institute of Labor Economics

Christopher Zeiss

University of Frankfurt - Economics and Business Administration Area

Date Written: October 2003

Abstract

This paper investigates the macroeconomic effects of job creation schemes and vocational training on the matching processes in West Germany. The empirical analysis is based on regional data for local employment office districts for the period from 1999 to 2003. The empirical model relies on a dynamic version of a matching function augmented by ALMP. In order to obtain consistent estimates in the presence of a dynamic panel data model, a first differences GMM estimator and a transformed maximum likelihood estimator are applied. Furthermore the paper considers the endogeneity problem of the policy measures. The results obtained from our estimates indicate that vocational training does not significantly affect the matching process and that job creation schemes have a negative effect.

Keywords: Active Labour Market Policy, dynamic panel data model, matching function, search models

JEL Classification: C23, E24, H43, J64, J68

Suggested Citation

Hujer, Reinhard and Zeiss, Christopher, Macroeconomic Impacts of Almp on the Matching Process in West Germany (October 2003). IZA Discussion Paper No. 915. Available at SSRN: https://ssrn.com/abstract=464683

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

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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