Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/20330
Authors: 
Frölich, Markus
Lechner, Michael
Year of Publication: 
2004
Series/Report no.: 
IZA Discussion paper series 1095
Abstract: 
The effects of active labour market policies (ALMP) on individual employment chances and earnings are evaluated by nonparametric instrumental variables based on Swiss administrative data with detailed regional information. Using an exogenous variation in the participation probabilities across fairly autonomous regional units (cantons) generated by the federal government, we identify the effects of ALMP by comparing individuals living in the same local labour market but in different cantons. Taking account of small sample problems occurring in IV estimation, our results suggest that ALMP increases individual employment probabilities by about 15% in the short term for a weighted subpopulation of compliers.
Subjects: 
local average treatment effect
active labour market policy
state borders
geographic variation
weak instruments
small sample problems of IV
JEL: 
C14
J68
Document Type: 
Working Paper

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