POLICY EVALUATION QUALITY - A QUASI-EXPERIMENTAL STUDY OF REGIONAL EMPLOYMENT SUBSIDIES IN SWEDEN

Policy evaluation methods differ as to the nature of their assumptions about the hypothetical policy-off case. We argue that policy evaluation quality can be raised by using a quasi-experimental method when feasible. In addition, the quality of evaluating policy changes can be raised by designing and publicizing the evaluation method, specified in detail, before any data on target variables are available. These policy evaluation properties characterize the study presented here. It concerns a significant reduction of payroll taxes in a depressed region of Sweden in order to bolster employment. The evaluation produced clear evidence of a complete lack of employment effects.