The Economics and Econometrics of Active Labor Market Programs

Heckman, James J.; Lalonde, Robert; Smith, Jeffrey A.

doi:10.1016/s1573-4463(99)03012-6

Cited by 2,230 publications

(2,180 citation statements)

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“…For instance, the European Union and the OECD-countries have in recent years emphasized programs as an important means to reduce long-term unemployment, see EC (1998) andOECD (1996). One main purpose of programs is to increase unemployed workers' employment prospects either by facilitating their job search, improve their work habits or augmenting their human capital (Heckman, Lalonde and Smith, 1999). Despite the increasing use of various programs, essential knowledge of what characterize successful programs is lacking.…”

Section: Introductionmentioning

confidence: 99%

The relative efficiency of labor market programs: Swedish experience from the 1990s

Carling

Richardson

2004

Labour Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu W O R K I N G P A P E R 2 0 0 1 : 2 Terms of use: Documents in EconStor mayThe relative efficiency of labor market programs: Swedish experience from the 1990´sKenneth Carling, Katarina Richardson Abstract This paper estimates the relative efficiency of eight Swedish labor market programs in reducing the unemployment duration for participants. The analysis uses a hazard regression model and a uniquely large and rich administrative data set that contains all adult workers who became unemployed during 1995-1997. We find that programs in which the participants obtain subsidized work experience and training provided by firms, have better outcome than classroom vocational training. The relative efficiency is similar across demographic and skill groups and independent of the timing of the placement. A careful examination of the assignment process to programs reveals no self-selection, but substantial administrative-selection. However, the administrative-selection appears to be unrelated to the outcome and, thus, should not bias the results.

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Section: Introductionmentioning

confidence: 99%

The relative efficiency of labor market programs: Swedish experience from the 1990s

Carling

Richardson

2004

Labour Economics

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“…The first case is when the instrument is a policy change in which case LATE is equivalent to PRTE defined in equation (10) and thus a policy-relevant parameter (Heckman, LaLonde and Smith, 1999). An example is the paper by Oreopoulos (2006) who uses an increase of the compulsory school-leaving age as a binary instrument.…”

Section: Aggregating Covariate-specific Lates Into One IV Effectmentioning

confidence: 99%

From LATE to MTE: Alternative methods for the evaluation of policy interventions

et al. 2016

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Compared to the existing surveys on the subject, our paper is less technical and speaks to the applied economist with a solid basic understanding of econometric techniques who would like to use MTE estimation. Our framework of analysis is a generalized Roy model based on the potential outcomes framework, within which we define different treatment effects of interest, and review the well-known case of IV estimation with a discrete instrument resulting in a local average treatment effect (LATE). Turning to IV estimation with a continuous instrument we demonstrate that the 2SLS estimator may be viewed as a weighted average of LATEs, and discuss MTE estimation as an alternative and more informative way of exploiting a continuous instrument. We clarify the assumptions underlying the MTE framework and illustrate how the MTE estimation is implemented in practice. Terms of use: Documents inJEL-Codes: C260, I260.

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“…When reinterpreting our distribution of education costs as distribution of success probabilities, we should expect that too many people participate in highly subsidized education and training programs. Thus, it is not astonishing that evaluation studies often …nd zero or small impacts of such programs on subsequent employment probabilities and earnings of the participants (see, e.g., Heckman et al, 1999;Bergemann et al, 2004;Lechner et al, 2005;Albrecht et al, 2005).…”

Section: Welfare Analysis and Policy Implicationsmentioning

confidence: 99%

Education, unemployment and migration

Eggert

Krieger

Meier

2010

Journal of Public Economics

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This paper studies a two-region model in which unemployment, education decisions and interregional migration are endogenous. The poorer region exhibits both lower wages and higher unemployment rates, and migrants to the richer region are disproportionally skilled. The brain drain from the poor to the rich region is accompanied by stronger incentives to acquire skills even for immobile workers. Regional shocks tend to affect both regions in a symmetric fashion, and skilled-biased technological change reduces wages of the unskilled. Both education and migration decisions are distorted by a uniform unemployment compensation, which justifies a corrective subsidization.JEL Code: H23, I20, J61, J64, R10.

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The Economics and Econometrics of Active Labor Market Programs

Cited by 2,230 publications

References 105 publications

The relative efficiency of labor market programs: Swedish experience from the 1990s

The relative efficiency of labor market programs: Swedish experience from the 1990s

From LATE to MTE: Alternative methods for the evaluation of policy interventions

Education, unemployment and migration

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