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Microeconometric evaluation of active labour market policies - SFI

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Frölich, Lechner (2003): Regional treatment intensity<br />

as instrument for the <strong>evaluation</strong> <strong>of</strong> <strong>active</strong> <strong>labour</strong> <strong>market</strong> <strong>policies</strong><br />

Idea<br />

Use arbitrariness <strong>of</strong> regional boarders, regional autonomy and a ‘strange’<br />

incentive introduced by the Swiss federal government as an instrument<br />

A. What do we want to know ?<br />

– Mean effects <strong>of</strong> programmes<br />

– Can estimate what we want to know only for subpopulation re<strong>active</strong> to<br />

changes in instrument (compliers LATE, marginal effect)<br />

– Note 1: Different instruments estimate may estimate different quantities<br />

– Note 2: Some <strong>of</strong> those quantities are not interesting at all

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