Microeconometric ALMP Evaluation: Methodological Issues and Previous Work

Abstract

Macroeconometric approaches to ALMP evaluation are fairly recent. Microeconometric evaluations have a slightly longer tradition, especially in the United States, where evaluation has mostly focused on the earnings effect of training programmes (Riddell, 1991; Leigh, 1995, Chapter 3). Studies on transition countries, on the other hand, have mostly concentrated on re-employment effects of ALMPs, as we will see below. The reason for this difference in focus lies in the distinct labour market situations in the United States on the one hand, and in the transition economies on the other. Whereas the incidence of long-term unemployment is fairly low in the U.S. (around 10 percent in total unemployment), it is one of the major problems in the labour markets in transition (around 30 to 40 percent in total unemployment, cf. Section 2.2). As a consequence, active labour market policies in transition countries have been designed to address the long-term unemployment problem and we will evaluate Polish ALMPs on this criterion in our microeconometric analysis.KeywordsHazard RateBaseline HazardReservation WageDuration ModelUnemployment SpellThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.