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Program Heterogeneity and Propensity Score Matching: An Application to the Evaluation of Active Labor Market Policies

The Review of Economics and Statistics 2002 84(2), 205-220
This paper addresses microeconometric evaluation by matching methods when the programs under consideration are heterogeneous. Assuming that selection into the different subprograms and the potential outcomes are independent given observable characteristics, estimators based on different propensity scores are compared and applied to the analysis of active labor market policies in the Swiss region of Zurich. Furthermore, the issues of heterogeneous effects and aggregation are addressed. The results suggest that an approach that incorporates the possibility of having multiple programs can be an informative tool in applied work.

Are Training Programs More Effective When Unemployment Is High?

Journal of Labor Economics 2009 27(4), 653-692 open access
We estimate short‐run, medium‐run, and long‐run individual labor market effects of training programs for the unemployed by following program participation on a monthly basis over a 10‐year period. Since analyzing the effectiveness of training over such a long period is impossible with experimental data, we use an administrative database compiled for evaluating German training programs. Based on matching estimation adapted to address the various issues that arise in this particular context, we find a clear positive relation between the effectiveness of the programs and the unemployment rate over time.

Why Do Tougher Caseworkers Increase Employment? The Role of Program Assignment as a Causal Mechanism

The Review of Economics and Statistics 2017 99(1), 180-183 open access
Previous research found that less accommodating caseworkers are more successful in placing unemployed workers into employment. This paper explores the causal mechanisms behind this result using semi-parametric mediation analysis. Analyzing rich linked job seeker-caseworker data for Switzerland, we find that the positive employment effects of less accommodating caseworkers are not driven by a particularly effective mix of labor market programs but, rather, by other dimensions of the counseling process, possibly including threats of sanctions and pressure to accept jobs.