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Hence, it could be called different programmes – different economic models. It is concerned with the modelling of the participation decision and the modelling of the impacts. Heckman, LaLonde, and Smith (1999) recommend a careful choice of the economic model that is suitable to the respective programme. From the discussion of the possible effects of job creation schemes it becomes obvious that a standard human capital model would provide little guidance to the programmes in analysis. Therefore, for a reasonable evaluation of programme impacts, the model of the participation decision has to be based on a careful description of the relevant determinants influencing participation.

For that reason, the most important microeconomic effects are, on the one hand, the prevention of a professional descent associated with a loss of human capital and a downgrading of the employees (prevention of human capital loss). Professional descent is a usual consequence of unemployment. On the other hand, job creation schemes should increase the chances of the participating individuals for regular and permanent employment (bridge to regular employment). Further intended positive aspects due to the offering of employment in such a programme are an increase of the personal motivation and self-respect (improve motivation).

However, this is a crucial assumption in the traditional evaluation literature (Heckman and Smith, 1998) and should be kept in mind when drawing policy-relevant implications. 2 The Average Effect of Treatment on the Treated As already mentioned, direct estimation of the individual effect of treatment in eq. 1) is impossible. Therefore, evaluation has to focus on population averages of gains from treatment. Under certain assumptions, it is possible to estimate group impact measures even though it may be impossible to measure the impacts of a programme on any particular individual (Heckman, LaLonde, and Smith, 1999).

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Daytrading University Trading Course

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