September 2010

IZA DP No. 5217: Macroeconometric Evaluation of Active Labour Market Policies in Austria

This paper contributes to the literature on macroeconometric evaluation of active labour market policies (ALMP) by considering the regional effects on both the matching process and the job-seeker rate. We use an unique new data set on all Austrian job-seekers between 2001 to 2007 and apply GMM and Quasi-ML estimators to take into account both the simultaneity of ALMP and spatial interrelations between employment office districts. The results indicate that job schemes in the non-profit sector, wage subsidies, and apprenticeships cause particularly favourable effects on the regional matching function and the job-seeker rate.