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Temporary Extra Jobs for Immigrants: Merging Lane to Employment or Dead‐End Road in Welfare?

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  • Stephan L. Thomsen
  • Thomas Walter

Abstract

Temporary Extra Jobs provide subsidized employment for welfare recipients and are the most frequently used welfare-to‐work program in Germany. We evaluate the effects of participation in this program on the employment chances of immigrant welfare recipients and contrast the findings with program effects for natives. Our results reveal that Temporary Extra Jobs fail to achieve their objective. The estimated effects are more adverse for natives, but the program is ineffective for participating immigrants either. Therefore, the program is a dead‐end road rather than a merging lane to regular employment both for natives and for immigrants.

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File URL: http://hdl.handle.net/10.1111/j.1467-9914.2010.00505.x
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Bibliographic Info

Article provided by CEIS in its journal LABOUR.

Volume (Year): 24 (2010)
Issue (Month): s1 (December)
Pages: 114-140

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Handle: RePEc:bla:labour:v:24:y:2010:i:s1:p:114-140

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References

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  1. Martin Huber & Michael Lechner & Conny Wunsch & Thomas Walter, 2009. "Do German Welfare-to-Work Programmes Reduce Welfare and Increase Work?," University of St. Gallen Department of Economics working paper series 2009 2009-03, Department of Economics, University of St. Gallen.
  2. Cohen-Goldner, Sarit & Eckstein, Zvi, 2004. "Estimating the Return to Training and Occupational Experience: The Case of Female Immigrants," CEPR Discussion Papers 4603, C.E.P.R. Discussion Papers.
  3. Jacobi, Lena & Kluve, Jochen, 2007. "Before and after the Hartz reforms: The performance of active labour market policy in Germany," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(1), pages 45-64.
  4. Hohmeyer, Katrin, 2009. "Effectiveness of One-Euro-Jobs: Do programme characteristics matter?," IAB Discussion Paper 200920, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  5. Jaap H. Abbring & Gerard J. van den Berg, 2003. "The Nonparametric Identification of Treatment Effects in Duration Models," Econometrica, Econometric Society, vol. 71(5), pages 1491-1517, 09.
  6. Kluve, Jochen, 2010. "The effectiveness of European active labor market programs," Labour Economics, Elsevier, vol. 17(6), pages 904-918, December.
  7. Rebecca M. Blank, 2002. "Evaluating Welfare Reform in the United States," NBER Working Papers 8983, National Bureau of Economic Research, Inc.
  8. Aldashev, Alisher & Thomsen, Stephan L. & Walter, Thomas, 2010. "Short-term training programs for immigrants: do effects differ from natives and why?," ZEW Discussion Papers 10-021, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  9. Calmfors, Lars, 1995. "Labour market policy and unemployment," European Economic Review, Elsevier, vol. 39(3-4), pages 583-592, April.
  10. Hujer, Reinhard & Thomsen, Stephan L., 2010. "How do the employment effects of job creation schemes differ with respect to the foregoing unemployment duration?," Labour Economics, Elsevier, vol. 17(1), pages 38-51, January.
  11. Clausen, Jens & Heinesen, Eskil & Hummelgaard, Hans & Husted, Leif & Rosholm, Michael, 2008. "The Effect of Integration Policies on the Time until Regular Employment of Newly Arrived Immigrants: Evidence from Denmark," IZA Discussion Papers 3849, Institute for the Study of Labor (IZA).
  12. repec:iab:iabzaf:v:40:i:1:p:45-64 is not listed on IDEAS
  13. Katrin Hohmeyer & Eva Kopf, 2009. "Who is targeted by One-Euro-Jobs? A Selectivity Analysis," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 129(4), pages 597-636.
  14. Martin, John P. & Grubb, David, 2001. "What works and for whom: a review of OECD countries' experiences with active labour market policies," Working Paper Series 2001:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  15. Fredriksson, Peter & Johansson, Per, 2008. "Dynamic Treatment Assignment," Journal of Business & Economic Statistics, American Statistical Association, vol. 26, pages 435-445.
  16. Jochen Kluve & Christoph M. Schmidt, 2002. "Can training and employment subsidies combat European unemployment?," Economic Policy, CEPR & CES & MSH, vol. 17(35), pages 409-448, October.
  17. Smith, Jeffrey & Todd, Petra, 2005. "Rejoinder," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 365-375.
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Citations

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Cited by:
  1. Dengler, Katharina, 2013. "The effectiveness of sequences of One-Euro Jobs : is it better to do more One-Euro-Jobs or to wait?," IAB Discussion Paper 201316, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  2. Heyer, Gerd & Koch, Susanne & Stephan, Gesine & Wolff, Joachim, 2011. "Evaluation der aktiven Arbeitsmarktpolitik: Ein Sachstandsbericht für die Instrumentenreform 2011 (Evaluation of active labor market programs : a summary of recent results for the German program refo," IAB Discussion Paper 201117, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  3. Gerd Heyer & Susanne Koch & Gesine Stephan & Joachim Wolff, 2012. "Evaluation der aktiven Arbeitsmarktpolitik: Ein Sachstandsbericht für die Instrumentenreform 2011," Journal of Labour Market Research, Springer, vol. 45(1), pages 41-62, March.
  4. Walter, Thomas & Butschek, Sebastian, 2013. "What Active Labour Market Programmes Work for Immigrants in Europe?," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79745, Verein für Socialpolitik / German Economic Association.
  5. Hohmeyer, Katrin & Wolff, Joachim, 2010. "Direct job creation in Germany revisited: Is it effective for welfare recipients and does it matter whether participants receive a wage?," IAB Discussion Paper 201021, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  6. Wolff, Joachim & Hohmeyer, Katrin, 2011. "Direct job creation revisited: Is it effective for welfare recipients and does it matter whether participants receive a wage?," Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48722, Verein für Socialpolitik / German Economic Association.

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