Does the Order and Timing of Active Labour Market Programmes Matter?

Working Paper: CEPR ID: DP6521

Authors: Michael Lechner; Stephan Wiehler

Abstract: This paper extends the traditional focus of active labour market policy evaluation from a static comparison of participation in a programme versus nonparticipation (or participation in another programme) to the evaluation of the effects of programme sequences, i.e. multiple participation or timing of such programmes. We use a dynamic evaluation framework that explicitly allows for dynamic selection into different stages of such sequences based on past intermediate outcomes to analyze multiple programmes, the timing of programmes, and the order of programmes. The analysis is based on exceptionally comprehensive data on the Austrian labour force. Our findings suggest that (i) active job search programmes are more effective after a qualification programme compared to the reverse order, that (ii) multiple participations in qualification measures dominates single participation, and that (iii) the effectiveness of specific labour market programmes deteriorates the later they start during an unemployment spell.

Keywords: active labour market policy; matching; estimation; panel data; programme evaluation

JEL Codes: J68


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
active job search programmes (J68)effectiveness of job search interventions (J68)
qualification programme (C52)active job search programmes (J68)
multiple participations in qualification measures (C30)better outcomes (I14)
timing of intervention (C41)long-term outcomes (I12)
timing of programme participation influences effectiveness of job search interventions (J68)effectiveness of job search interventions (J68)

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