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Microeconometric evaluation of active labour market policies - SFI

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Frölich, Lechner (2003) – regional IV<br />

Conditions for valid exclusion restriction<br />

A. Regional treatment intention (RTI) does not affect non-treated<br />

and treated employment chances<br />

B. RTI is independent <strong>of</strong> employability <strong>of</strong> local population<br />

Conditions to estimate a mean causal effect for compliers<br />

C. RTI is independent <strong>of</strong> type-composition <strong>of</strong> local population<br />

D. Size <strong>of</strong> defier population is zero<br />

E. Size <strong>of</strong> complier population is positive

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