Targeting Labour Market Programmes: Results from a Randomised Experiment

Working Paper: CEPR ID: DP6537

Authors: Stefanie Behncke; Markus Frlich; Michael Lechner

Abstract: We evaluate a randomized experiment of a statistical support system developed to assist caseworkers in Swiss employment offices in choosing appropriate active labour market programmes for their unemployed clients. This statistical support system predicted the labour market outcome for each programme and thereby suggested an 'optimal' labour market programme for each unemployed person. The support system was piloted in several employment offices. In those pilot offices, half of the caseworkers used the system and the other half acted as control group. The allocation of the caseworkers to treatment and control group was random. The experiment was designed such that caseworkers retained full discretion about the choice of active labour market programmes, and the evaluation results showed that caseworkers largely ignored the statistical support system. This indicates that stronger incentives are needed for caseworkers to comply with statistical profiling and targeting systems.

Keywords: Active Labour Market Programmes; Profiling; Public Employment Services; Statistical Treatment Rules; Unemployment

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
Caseworker Discretion (I38)Compliance with SAPS (H26)
SAPS (C87)Caseworker Behaviour (I38)
SAPS (C87)Jobseeker Assignment to ALMPs (J68)

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