The impact of active labour market programmes on the duration of unemployment in Switzerland

Abstract

This article evaluates the effects of Swiss active labour market programmes on the job chances of unemployed workers. The main innovation is a comparison of two important dynamic evaluation estimators: the ‘matching’ estimator and the ‘timing-of-events’ estimator. We find that both estimators generate different treatment effects. According to the matching estimator temporary subsidised jobs shorten unemployment duration whereas training programmes and employment programmes do not. In contrast, the timing-of-events estimator suggests that none of the Swiss active labour market programmes shortens unemployment duration.