Multiple Active Labor Market Policy Participation in East Germany: An Assessment of Outcomes

Annette Bergemann, Bernd Fitzenberger, Birgit Schulz, Stefan Speckesser

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Abstract

This paper evaluates employment effects of job creation schemes and further training in East Germany for the period 1990-1998. Multiple participation in programs is quite frequent. Taking account of recurrent participation, we identify the causal effect of the treatment-on-the-treated by a two-step procedure: First, we apply the matching technique based on estimated propensity scores. Secondly, we use a difference-in-differences estimator. Hereby, we especially take account of Ashenfelter's Dip involving a decrease in the participants' employment shortly before the start of a program which is presumably due to the anticipation of the participation. Except for certain participants in a second treatment, our results show at best insignificant long-term employment effects of active labor market policy. However, the results also indicate that a more careful analysis of employment dynamics is warranted.
Original languageEnglish
Pages (from-to)195-244
JournalKonjunkturpolitik/Beihefte
Volume51
Publication statusPublished - 2000

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    Bergemann, A., Fitzenberger, B., Schulz, B., & Speckesser, S. (2000). Multiple Active Labor Market Policy Participation in East Germany: An Assessment of Outcomes. Konjunkturpolitik/Beihefte, 51, 195-244.