Arbeitspapier

Regional Treatment Intensity as an Instrument for the Evaluation of Labour Market Policies

The effects of active labour market policies (ALMP) on individual employment chances and earnings are evaluated by nonparametric instrumental variables based on Swiss administrative data with detailed regional information. Using an exogenous variation in the participation probabilities across fairly autonomous regional units (cantons) generated by the federal government, we identify the effects of ALMP by comparing individuals living in the same local labour market but in different cantons. Taking account of small sample problems occurring in IV estimation, our results suggest that ALMP increases individual employment probabilities by about 15% in the short term for a weighted subpopulation of compliers.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 1095

Classification
Wirtschaft
Semiparametric and Nonparametric Methods: General
Mobility, Unemployment, and Vacancies: Public Policy
Subject
local average treatment effect
active labour market policy
state borders
geographic variation
weak instruments
small sample problems of IV
Arbeitsmarktpolitik
Wirtschaftspolitische Wirkungsanalyse
Regionale Arbeitslosigkeit
Schätzung
Schweiz
treatment effect

Event
Geistige Schöpfung
(who)
Frölich, Markus
Lechner, Michael
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2004

Handle
Last update
10.03.2025, 11:41 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Frölich, Markus
  • Lechner, Michael
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2004

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