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
Date Written: October 2006
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: Suggested Citation