Working Paper: CEPR ID: DP5924
Authors: Michael Lechner; Conny Wunsch
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: causal effects; matching estimation; panel data; programme evaluation
JEL Codes: J68
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Participation in active labour market programmes (J68) | Employment chances of participants in the regular labour market (J68) |
| Participation in active labour market programmes (J68) | Unemployment duration (J64) |
| Participation in active labour market programmes (J68) | Benefit receipt (H53) |
| Suboptimal selection into programme types (C24) | Employment chances of participants in the regular labour market (J68) |