Priority to unemployed immigrants? A causal machine learning evaluation of training in Belgium

Bart Cockx;Michael Lechner;Joost Bollens
(2020) , 81 pages

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Authors
  • Bart CockxIRES (LIDAM) corresponding member, Department of Economics, Ghent University
    Author
  • Michael LechnerSwiss Institute for Empirical Economic Research (SEW), University of St. Gallen
    Author
  • Joost BollensVlaamse Dienst voor Arbeidsbemiddeling en Beroepsopleiding (VDAB)
    Author
Abstract
Based on administrative data of unemployed in Belgium, we estimate the labour market effects of three training programmes at various aggregation levels using Modified Causal Forests, a causal machine learning estimator. While all programmes have positive effects after the lock-in period, we find substantial heterogeneity across programmes and unemployed. Simulations show that “black-box” rules that reassign unemployed to programmes that maximise estimated individual gains can considerably improve effectiveness: up to 20% more (less) time spent in (un)employment within a 30 months window. A shallow policy tree delivers a simple rule that realizes about 70% of this gain.
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Citations

Bart Cockx, Michael Lechner, & Joost Bollens. (2020). Priority to unemployed immigrants? A causal machine learning evaluation of training in Belgium (IRES Discussion Papers 2020016). https://hdl.handle.net/2078.5/97621