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Microeconometric evaluation of active labour market policies - SFI

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The identification problem<br />

– Nonparticipants may not be comparable to participants<br />

– Participants before participation may not be comparable to participants after<br />

participation<br />

– These problems might persist even after conditioning on observable attributes<br />

Bad news: required assumptions are untestable!<br />

Even worse: different identifying strategies identify different effects!<br />

Important first steps in every <strong>evaluation</strong> study:<br />

- What do we want to estimate?<br />

- How can we translate desired effect into a statistical causal parameter?<br />

- What do we need to know to be able to estimate this parameter?

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