Active Labour Market Policy in East Germany: Waiting for the Economy to Take Off

University of St. Gallen Economics Discussion Paper No. 2006-24

48 Pages Posted: 17 Oct 2006

See all articles by Michael Lechner

Michael Lechner

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

Conny Wunsch

University of Basel; IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute); University of St. Gallen

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Date Written: October 2006

Abstract

We investigate the effects of the most important East German active labour market programmes on the labour market outcomes of their participants. The analysis is based on a large and informative individual database coming from administrative data sources. Using matching methods, we find that over a horizon of 2.5 years after programme start the programmes fail to increase the employment chances of their participants in the regular labour market. However, the programmes may have other effects for their participants that may be considered important in the especially difficult situation experienced in the East German labour market.

Keywords: Matching estimation, causal effects, programme evaluation, panel data

JEL Classification: J68

Suggested Citation

Lechner, Michael and Wunsch, Conny, Active Labour Market Policy in East Germany: Waiting for the Economy to Take Off (October 2006). University of St. Gallen Economics Discussion Paper No. 2006-24, Available at SSRN: https://ssrn.com/abstract=937873 or http://dx.doi.org/10.2139/ssrn.937873

Michael Lechner (Contact Author)

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

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Conny Wunsch

University of Basel ( email )

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Basel, CH-4003
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IZA Institute of Labor Economics ( email )

P.O. Box 7240
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CESifo (Center for Economic Studies and Ifo Institute) ( email )

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Munich, DE-81679
Germany

University of St. Gallen ( email )

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St. Gallen, 9000
Switzerland

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