Program evaluation

Program evaluation provides an overview of the effectiveness of a variety of labor market policies that have been tested in diverse settings across various countries. The articles analyze whether or not the individual and the economy fair better without the measures studied.

  • Do social interactions in the classroom improve academic attainment?

    Student sorting into classes complicates policies that utilize peer effects to optimize educational outcomes

    Shqiponja Telhaj, June 2018
    The role of social interactions in modifying individual behavior is central to many fields of social science. In education, one essential aspect is that “good” peers can potentially improve students’ academic achievement, career choices, or labor market outcomes later in life. Indeed, evidence suggests that good peers are important in raising student attainment, both in compulsory schooling and university. Interventions that change the ability group composition in ways that improve student educational outcomes without exacerbating inequality therefore offer a promising basis for education policies.
    MoreLess
  • Do anti-discrimination policies work?

    A mix of policies could be the solution to reducing discrimination in the labor market

    Marie-Anne Valfort, May 2018
    Discrimination is a complex, multi-factor phenomenon. Evidence shows widespread discrimination on various grounds, including ethnic origin, sexual orientation, gender identity, religion or beliefs, disability, being over 55 years old, or being a woman. Combating discrimination requires combining the strengths of a range of anti-discrimination policies while also addressing their weaknesses. In particular, policymakers should thoroughly address prejudice (taste-based discrimination), stereotypes (statistical discrimination), cognitive biases, and attention-based discrimination.
    MoreLess
  • Maternity leave versus early childcare—What are the long-term consequences for children?

    Despite increasingly generous parental leave schemes their advantages over subsidized childcare remain unclear

    Most OECD countries spend substantially more on maternity leave schemes than on early childcare. However, given high tax burdens and rapidly aging populations, female labor force participation is critically needed. Moreover, it is important to know whether the main beneficiaries, the children themselves, reap more benefits from one or the other in the long term. The first cohorts exposed to the introduction or extension of maternity/paternity leave schemes and subsidized childcare programs have now completed education and entered the labor market, allowing an investigation of these programs’ long-term economic effects.
    MoreLess
  • The usefulness of experiments

    Are experiments the gold standard or just over-hyped?

    Jeffrey A. Smith, May 2018
    Non-experimental evaluations of programs compare individuals who choose to participate in a program to individuals who do not. Such comparisons run the risk of conflating non-random selection into the program with its causal effects. By randomly assigning individuals to participate in the program or not, experimental evaluations remove the potential for non-random selection to bias comparisons of participants and non-participants. In so doing, they provide compelling causal evidence of program effects. At the same time, experiments are not a panacea, and require careful design and interpretation.
    MoreLess
  • Managerial quality and worker productivity in developing countries

    Business consulting and supervisory skills training can improve firm productivity and labor relations

    Achyuta Adhvaryu, February 2018
    Productivity differences across firms and countries are surprisingly large and persistent. Recent research reveals that the country-level distributions of productivity and quality of management are strikingly similar, suggesting that management practices may play a key role in the determination of worker and firm productivity. Understanding the causal impacts of these practices on productivity and the effectiveness of various management interventions is thus of primary policy interest.
    MoreLess
  • Why is youth unemployment so high and different across countries?

    Young people experience worse labor market outcomes than adults worldwide but the difference varies greatly internationally

    Francesco Pastore, January 2018
    In Germany, young people are no worse off than adults in the labor market, while in southern and eastern European countries, they fare three to four times worse. In Anglo-Saxon countries, both youth and adults fare better than elsewhere, but their unemployment rates fluctuate more over the business cycle. The arrangements developed in each country to help young people gain work experience explain the striking differences in their outcomes. A better understanding of what drives these differences in labor market performance of young workers is essential for policies to be effective
    MoreLess
  • Central exit exams improve student outcomes

    External school leaving exams raise student achievement and improve how grades are understood in the labor market

    Ludger Woessmann, January 2018
    Reaching the policy goal of improving student achieve­ment by adding resources to the school system has often proven elusive. By contrast, ample evidence indicates that central exit exams constitute an important feature of a school system’s institutional framework, which can hold students, teachers, schools, and administrators accountable for student outcomes. While critics point to issues such as teaching test-only skills, which may leave students ill-prepared for the real world, the evidence does not bear this out. Overall, central exams are related to better student achievement, favorable labor market outcomes, and higher economic growth.
    MoreLess
  • Rethinking the skills gap

    Better understanding of skills mismatch is essential to finding effective policy options

    Evidence suggests that productivity would be much higher and unemployment much lower if the supply of and demand for skills were better matched. As a result, skills mismatch between workers (supply) and jobs (demand) commands the ongoing attention of policymakers in many countries. Policies intended to address the persistence of skills mismatch focus on the supply side of the issue by emphasizing worker education and training. However, the role of the demand side, that is, employers’ wage-setting practices, garners comparatively little policy attention.
    MoreLess
  • Fertility decisions and alternative types of childcare

    Relative costs and family characteristics determine the effectiveness of different forms of childcare

    Chiara Pronzato, September 2017
    Increasing population age and low fertility rates, which characterize most modern societies, compromise the balance between people who can participate in the labor market and people who need care. This is a demographic and social issue that is likely to grow in importance for future generations. It is therefore crucial to understand what factors can positively influence fertility decisions. Policies related to the availability and costs of different kinds of childcare (e.g. formal care, grandparents, childminders) should be considered and promoted after an evaluation of their effects on the probability of women having children.
    MoreLess
  • Job search monitoring and assistance for the unemployed

    Can job search requirements and job search assistance help the unemployed find better jobs faster?

    Ioana E. Marinescu, August 2017
    In many countries, reducing unemployment is among the most important policy goals. In this context, monitoring job search by the unemployed and providing job search assistance can play a crucial role. However, more and more stringent monitoring and sanctions are not a panacea. Policymakers must consider possible downsides, such as unemployed people accepting less stable and lower-paying jobs. Tying “moderate” monitoring to job search assistance may be the essential ingredient to make this approach successful.
    MoreLess
show more