Microeconometric evaluation of active labour market policies - SFI
Microeconometric evaluation of active labour market policies - SFI
Microeconometric evaluation of active labour market policies - SFI
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Frölich, Lechner (2003) – regional IV<br />
B. How do we identify LATEs?<br />
– suppose people locate randomly in different parts <strong>of</strong> a region<br />
– suppose this region constitutes one integrated <strong>labour</strong> <strong>market</strong> with two treatment regimes<br />
– suppose that once being unemployed, the probability <strong>of</strong> participation in ALMP differs according to<br />
specific part <strong>of</strong> region the UE is living<br />
Living in a specific part <strong>of</strong> the region impacts participation probability, but has no impact on <strong>labour</strong><br />
<strong>market</strong> outcomes in the absence <strong>of</strong> participation<br />
Location in region is a candidate for an INSTRUMENT!<br />
Estimates mean effect for those who would change participation status if faced with different<br />
participation probability (complier)!
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