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Activity Number: 173
Type: Contributed
Date/Time: Monday, August 3, 2009 : 10:30 AM to 12:20 PM
Sponsor: Business and Economic Statistics Section
Abstract - #304090
Title: Are Job Centers More Effective When Caseloads Are Reduced? An Evaluation of a Regional Pilot Project
Author(s): Katja Wolf and Gerhard Krug*+ and Barbara Hofmann
Companies: Institute for Employment Research and Institute for Employment Research
Address: Regensburger Straße 104, Nuremberg, 90478, Germany
Keywords: evaluation ; genetic matching ; Germany ; active labour market policy
Abstract:

In this paper we evaluate the success of a pilot project in German local employment offices, where the caseload (number of unemployed per case worker) was reduced significantly in 14 regional employment offices. Since the treatment regions were not chosen at random, we have to rely on ex-post randomization using quasi-experimental nonparametric matching methods. Since we faced the problem that the number of potential control units is relatively low, the standard propensity score approach is not optimal in balancing the differences resulting from non-random assignment. To overcome this limitation we use genetic matching, which was developed quite recently by Diamond and Sekhon (2005). Empirical evidence clearly indicates positive effects: treatment employment offices performed better than the control group regarding several indicators of success.


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