Working Paper Series
IFAU - Institute for Evaluation of Labour Market and Education Policy
Bruno Crépon, Marc Ferracci, Grégory Jolivet and Gerard J. van den Berg
Active labor market policy effects in a dynamic setting
Abstract: This paper implements a method to identify and estimate
treatment effects in a dynamic setting where treatments may occur at any
point in time. By relating the standard matching approach to the
timing-of-events approach, it demonstrates that effects of the treatment on
the treated at a given date can be identified even though non-treated may
be treated later in time. The approach builds on a "no anticipation"
assumption and the assumption of conditional independence between the
duration until treatment and the counterfactual durations until exit. To
illustrate the approach, the paper studies the effect of training for
unemployed workers in France, using a rich register data set. Training has
little impact on unemployment duration. The contamination of the standard
matching estimator due to later entries into treatment is large if the
treatment probability is high.
Keywords: Treatment; program participation; unemployment duration; training; propensity score; matching; contamination bias; (follow links to similar papers)
JEL-Codes: J64; (follow links to similar papers)
13 pages, January 20, 2009
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