Research and Statistics

The Use of Propensity score matching in the Evaluation of Active Labour Market Policies

Working Paper No. 4

By Alex Bryson, Richard Dorsett and Susan Purdon

Labour market policy evaluations aim to identify whether changes in policy, and the introduction of new programmes influence outcomes such as increases in employment for those subject to the policy change. Propensity Score Matching (PSM) is one technique for meeting this objective. The Working Paper critically discusses PSM in the context of alternative methods of evaluation, provides information about the conditions which must be met in order for PSM to be feasible, and describes the procedures used to conduct PSM.

June 2002

ISBN 1 84388 043 1 Paperback