Program Heterogeneity and Propensity Score Matching: an Application to the Evaluation of Active Labor Market Policies

This paper addresses microeconometri c evaluation by matching methods when the programs under consideratio n are heterogeneous . Assuming that selection into the different subprograms and the potential outcomes are independent given observable characteristics , estimators based on different propensity scores are compared and applied to the analysis of active labor market policies in the Swiss region of Zurich. Furthermore, the issues of heterogeneou s effects and aggregation are addressed. The results suggest that an approach that incorporate s the possibility of having multiple programs can be an informative tool in applied work.