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Title:The effect of active labor market programs on not-yet treated unemployed individuals PDF Logo
Authors:van den Berg, Gerard J.
Bergemann, Annette
Caliendo, Marco
Issue Date:2008
Series/Report no.:Working paper // IFAU - Institute for Labour Market Policy Evaluation 2008:26
Abstract:Labor market programs may affect unemployed individuals' behavior before they enroll. Such ex ante effects are hard to identify without model assumptions. We develop a novel method that relates self-reported perceived treatment rates and job-search behavioral outcomes, like the reservation wage, to each other, among newly unemployed workers. Job search theory is used to derive theoretical predictions. To deal with effect heterogeneity and selectivity, the effects of interest are estimated by propensity score matching. We apply the method to the German ALMP system, using a novel data set including self-reported assessments of the variables of interest as well as an unusually detailed amount of information on behavior, attitudes, and past outcomes. We find that the system generates a negative ex ante effect on the reservation wage and a positive effect on search effort.
Subjects:Policy evaluation
reservation wage
search effort
expectations
unemployment duration
program evaluation
active labor market policy
identification
JEL:J64
Document Type:Working Paper
Appears in Collections:Working Papers, IFAU - Institute for Evaluation of Labour Market and Education Policy

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