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.

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Year of publication:	2004
Authors:	Frölich, Markus ; Lechner, Michael
Publisher:	Bonn : Institute for the Study of Labor (IZA)
Subject:	Arbeitsmarktpolitik \| Wirtschaftspolitische Wirkungsanalyse \| Regionale Arbeitslosigkeit \| Schätzung \| Schweiz \| treatment effect \| local average treatment effect \| active labour market policy \| state borders \| geographic variation \| weak instruments \| small sample problems of IV

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Series:	IZA Discussion Papers ; 1095
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	384730302 [GVK] hdl:10419/20330 [Handle]
Classification:	C14 - Semiparametric and Nonparametric Methods ; J68 - Public Policy
Source:	EconStor