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

47 Pages Posted: 24 Oct 2006  

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). IZA Discussion Paper No. 2363. Available at SSRN: https://ssrn.com/abstract=939498

Michael Lechner (Contact Author)

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

Varnbuelstrasse 14
St. Gallen, 9000
Switzerland
+41 71 224 2320 (Phone)

Conny Wunsch

University of St. Gallen ( email )

Dufourstrasse 50
St. Gallen, 9000
Switzerland

University of Basel ( email )

Petersplatz 1
Basel, CH-4003
Switzerland

IZA Institute of Labor Economics ( email )

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

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

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