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The Curse and Blessing of Training the Unemployed in a Changing Economy : The Case of East Germany after Unification

We analyse the effects of government-sponsored training for the unemployed conducted during East German transition. For the microeconometric analysis, we use a new, large and informative administrative database that allows us to use matching methods to address potential selection bias, to study different types of programmes, and to observe labour market outcomes over 8 years. We find...

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English / 01/11/2007

A Note on the Relation of Weighting and Matching Estimators

This paper compares the inverse-probability-of-selection-weighting estimation principle with the matching principle and derives conditions for weighting and matching to identify the same and the true distribution, respectively. This comparison improves the understanding of the relation of these estimation principles and allows constructing new estimators.

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English / 01/09/2007

Partial Identification of Wage Effects of Training Programs

In an evaluation of a job-training program, the influence of the program on the individual earnings capacity is important, because it reflects the program effect on human capital. Estimating these effects is complicated because earnings are observed for employed individuals only, and employment is itself an outcome of the program. Point identification of these effects can only be...

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English / 31/07/2007

Stochastic labour market shocks, labour market programmes, and human capital formation: a theoretical and empirical analysis

This paper develops a life-cycle model of labour supply that captures endogenous human capital
formation allowing for individual's heterogeneous responses to stochastic labour market shocks. The
shocks determines conditions in the labour market and sort individuals into three labour market regimes;
employment, unemployment with and unemployment without...

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Deutsch / 09/07/2007

What is the Value Added by Caseworkers?

We investigate the allocation of unemployed individuals to different subprograms within Swiss active labour market policy by the caseworkers at local employment offices in Switzerland in 1998. We are particularly interested in whether the caseworkers allocate the unemployed to services in ways that will maximize the program-induced changes in their employment probabilities. Our...

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English / 01/04/2007

Arbeiten lohnt sich nicht - ein zweites Kind noch weniger. Zum Einfluss einkommensabhängiger Tarife in der Kinderbetreuung"

Child-care subsidies are meant to facilitate work for mothers with small children. The paper demonstrates that the predominant current income-dependent subsidy scheme in Switzerland (which is currently also discussed in Germany) creates strong negative work incentives especially for well qualified women. The example of the city of Zurich shows that it does not pay off for mothers to...

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Deutsch / 01/01/2007

Rqdeco: a Stata module to decompose differences in distribution

WARNING: this page is no longer updated. Go to http://www.econ.brown.edu/fac/Blaise_Melly/ to find the current version of the codes.
Rqdeco is a Stata command computing a decomposition of differences in distributions using quantile regression. It is a generalization of the Oaxaca/Blinder decomposition since it...

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English / 01/01/2007

Bounds, health habits and anchoring income effects

Surveys are often design so that initial non-respondents to some continuous amount can disclose partial information with follow-up questions. These questions are often based on prompting responses with a sequence of bids that classify the undisclosed amount within a category. Secondary variables may reduce the problem of nonresponse but are unlikely to eliminate the problem...

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English / 01/01/2007

Identification and Estimation with Partial Respondents and Anchoring Effects

Household surveys often suffer from nonresponse on variable such as income, savings or wealth. The work by Charles F. Manski in the 1990s shows how bounds on conditional quantiles on the variable of interest can be derived, allowing for any type of non-random item nonresponse. The width between these bounds can be reduced using follow up questions in the form of unfolding brackets...

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English / 01/01/2007

Are the effects of training programmes in Germany sensitive to the choice and measurement of labour market outcomes?

We reconsider the evidence of Lechner, Miquel and Wunsch (2004, 2005) on the effectiveness of training programmes for the unemployed conducted in East and West Germany in the period 1993-1994 by investigating whether, and if so, how overall policy conclusions depend on the particular choice of the outcome variable. We find that different measures of employment and earnings provide...

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English / 01/12/2006

The Relation of Different Concepts of Causality in Econometrics

Granger and Sims non-causality (GSNC) are compared to non-causality based on concepts popular in the microeconometrics and programme evaluation literature (potential outcome non-causality, PONC). GSNC is defined as a set of restrictions on joint distributions of random variables with observable sample counterparts, whereas PONC combines restrictions on partially unobservable...

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English / 15/06/2006

Aktive Arbeitsmarktpolitik in Deutschland und der Schweiz - eine Gegenüberstellung

Aktive Arbeitsmarktpolitik in der Schweiz wird der deutschen gegenübergestellt. Beide Länder haben viele Gemeinsamkeiten bezüglich Zielsetzung, Instrumenten und institutionellen Reformen von aktiver Arbeitsmarktpolitik. In der Schweiz stand jedoch bereits schon früher eine informative administrative Datenbasis zur Evaluation zur Verfügung, so dass arbeitsmarktliche Massnahmen dort...

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Deutsch / 15/05/2006

Statistical Assistance for Programme Selection - For a Better Targeting of Active Labour Market Policies in Switzerland

In this paper the motivation and various concepts of statistical systems for assisting case workers in assigning unemployed persons to active labour market programmes (ALMP) are examined and the particular implementation of such a statistical system in Switzerland, which was introduced in the form of a randomized pilot study, is discussed.

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English / 15/05/2006

Estimation of counterfactual distributions using quantile regression

This paper proposes estimators of unconditional distribution functions in the presence of covariates. The methods are based on the estimation of the conditional distribution by (parametric or nonparametric) quantile regression. The conditional distribution is then integrated over the range of the covariates, allowing for the estimation of counterfactual distributions. In the...

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English / 10/02/2006

Public and private sector wage distributions controlling for endogenous sector choice

We apply the instrumental quantile regression estimator of Chernozhukov and Hansen (2004b and 2006) to examine the wage structure in the public and private sector in Germany. Assuming exogenous sector choice, we find a negative mean public sector wage premium and show that the wage distribution is more compressed in the public sector. Correcting for endogenous sector choice reverses...

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English / 09/02/2006

Cournot Competition and Hit-and-Run Entry and Exit in a Teaching Experiment

We describe a computerized experiment which can be used to introduce students to imperfect competition in courses on introductory economics, industrial organization, game theory, and strategy & management. In addition to introducing students to strategic thinking in general, the experiment serves to demonstrate that firm profits fall as the number of competitors is increased in a...

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English / 01/01/2006

Labour Market Policy in Germany: Institutions, Instruments and Reforms since Unification

Almost 15 years after Unification in 1990, Germany is still struggling with the economic consequences of this event. Although the East German economy has made considerable progress since its near-collapse after the German monetary, economic and social union in July 1990, the East German labour market has not yet recovered. Western Germany, which had to bear a substantial part of the...

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English / 01/01/2006

Does subsidised temporary employment get the unemployed back to work? An econometric analysis of two different schemes

Not available in German. Subsidised employment is an important tool of active labour market policies to improve the chances of the unemployed to find permanent employment. Using informative individual administrative data we investigate the effects of two different schemes of subsidised temporary employment implemented in Switzerland. One scheme operates as a non-profit employment...

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English / 01/12/2005

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