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Sectoral Heterogeneity in the Employment Effects of Job Creation Schemes in Germany

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Author Info

  • Marco Caliendo

    ()
    (DIW Berlin)

  • Reinhard Hujer

    ()
    (Universitaet Frankfurt)

  • Stephan L. Thomsen

    ()
    (Universitaet Frankfurt)

Abstract

Job creation schemes (JCS) have been one important programme of active labour market policy (ALMP) in Germany for a long time. They aim at the re-integration of hard-to-place unemployed individuals into regular employment. A thorough microeconometric evaluation of these programmes was hindered by the fact, that available survey datasets have been too small to account for a possible occurrence of effect heterogeneity. However, identifying effect heterogeneity can help to improve the design and implementation of future programmes. Hence, we use administrative data of the Federal Employment Agency, containing over 11,000 participants to analyse the employment effects of JCS on an individual level. We focus explicitly on effect heterogeneity caused by differences in the implementation of programmes, whereas we analysed these effects with respect to group-specific and regional heterogeneity in a previous paper. At first, we evaluate the effects with respect to the economic sector in which the JCS are accomplished. Second, we analyse if different types of support lead to different effects. Finally, we examine if there are varying effects which can be attributed to different implementing institutions. The results are rather discouraging and show that JCS are in general not able to improve the re-integration chances of participants into regular employment.

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Bibliographic Info

Article provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.

Volume (Year): 226 (2006)
Issue (Month): 2 (March)
Pages: 139-179

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Handle: RePEc:jns:jbstat:v:226:y:2006:i:2:p:139-179

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Related research

Keywords: Evaluation; job creation schemes; employment effects; sectoral heterogeneity;

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References

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  1. Bernd Fitzenberger & Stefan Speckesser, 2007. "Employment effects of the provision of specific professional skills and techniques in Germany," Empirical Economics, Springer, vol. 32(2), pages 529-573, May.
  2. Michael Gerfin & Michael Lechner, 2002. "A Microeconometric Evaluation of the Active Labour Market Policy in Switzerland," Economic Journal, Royal Economic Society, vol. 112(482), pages 854-893, October.
  3. Caliendo, Marco & Kopeinig, Sabine, 2005. "Some Practical Guidance for the Implementation of Propensity Score Matching," IZA Discussion Papers 1588, Institute for the Study of Labor (IZA).
  4. Lechner, Michael & Miquel, Ruth & Wunsch, Conny, 2005. "The Curse and Blessing of Training the Unemployed in a Changing Economy: The Case of East Germany After Unification," IZA Discussion Papers 1684, Institute for the Study of Labor (IZA).
  5. Guido W. Imbens, 2003. "Nonparametric Estimation of Average Treatment Effects under Exogeneity: A Review," NBER Technical Working Papers 0294, National Bureau of Economic Research, Inc.
  6. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," NBER Working Papers 6699, National Bureau of Economic Research, Inc.
  7. Lechner, Michael & Miquel, Ruth & Wunsch, Conny, 2005. "Long run Effects of Public Sector Sponsored Training in West Germany," CEPR Discussion Papers 4851, C.E.P.R. Discussion Papers.
  8. D. Firth & C. Payne & J. Payne, 1999. "Efficacy of programmes for the unemployed: discrete time modelling of duration data from a matched-comparison study," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 162(1), pages 111-120.
  9. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
  10. Caliendo, Marco & Hujer, Reinhard & Thomsen, Stephan Lothar, 2005. "The Employment Effects of Job Creation Schemes in Germany: A Microeconometric Evaluation," IZA Discussion Papers 1512, Institute for the Study of Labor (IZA).
  11. Sianesi, Barbara, 2001. "An evaluation of the active labour market programmes in Sweden," Working Paper Series 2001:5, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  12. Richard Blundell & Lorraine Dearden & Barbara Sianesi, 2004. "Evaluating the impact of education on earnings in the UK: models, methods and results from the NCDS," LSE Research Online Documents on Economics 19451, London School of Economics and Political Science, LSE Library.
  13. Kraus, Florian & Puhani, Patrick A. & Steiner, Viktor, 1998. "Do public works programs work? Some unpleasant results from the East German experience," ZEW Discussion Papers 98-07, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  14. Eichler, Martin & Lechner, Michael, 2002. "An evaluation of public employment programmes in the East German State of Sachsen-Anhalt," Labour Economics, Elsevier, vol. 9(2), pages 143-186, April.
  15. Hujer, Reinhard & Caliendo, Marco & Thomsen, Stephan L., 2004. "New evidence on the effects of job creation schemes in Germany--a matching approach with threefold heterogeneity," Research in Economics, Elsevier, vol. 58(4), pages 257-302, December.
  16. Fredriksson, Peter & Johansson, Per, 2004. "Dynamic Treatment Assignment – The Consequences for Evaluations Using Observational Data," IZA Discussion Papers 1062, Institute for the Study of Labor (IZA).
  17. James J. Heckman & Jeffrey A. Smith, 1999. "The Pre-Program Earnings Dip and the Determinants of Participation in a Social Program: Implications for Simple Program Evaluation Strategies," NBER Working Papers 6983, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Hohendanner, Christian & Klemm, Matthias & Promberger, Markus & Sowa, Frank, 2011. "Vom Ein-Euro-Jobber zum ‘regulären‘ Mitarbeiter? : eine Mixed-Methods-Evaluation zu innerbetrieblichen Übergängen aus öffentlich geförderter in sozialversicherungspflichtige Beschäftigung," IAB Discussion Paper 201122, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  2. Michael Lechner & Stephan Wiehler, 2007. "Kids or Courses? Gender Differences in the Effects of Active Labor Market Policies," University of St. Gallen Department of Economics working paper series 2007 2007-08, Department of Economics, University of St. Gallen.
  3. Michael Lechner & Conny Wunsch, 2007. "Active Labour Market Policy in East Germany: Waiting for the Economy to take off," Kiel Working Papers 1308, Kiel Institute for the World Economy.
  4. Brück-Klingberg, Andrea & Burkert, Carola & Garloff, Alfred & Seibert, Holger & Wapler, Rüdiger, 2011. "Does higher education help immigrants find a job? : A survival analysis," IAB Discussion Paper 201106, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  5. Huber, Martin & Lechner, Michael & Wunsch, Conny, 2010. "How to Control for Many Covariates? Reliable Estimators Based on the Propensity Score," IZA Discussion Papers 5268, Institute for the Study of Labor (IZA).
  6. Stephan, Gesine, 2008. "The effects of active labor market programs in Germany : an investigation using different definitions of non-treatment," IAB Discussion Paper 200812, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  7. 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].
  8. Huber, Martin & Lechner, Michael & Wunsch, Conny, 2013. "The performance of estimators based on the propensity score," Journal of Econometrics, Elsevier, vol. 175(1), pages 1-21.
  9. Hujer, Reinhard & Thomsen, Stephan L., 2006. "Wirksamkeit von Arbeitsbeschaffungsmaßnahmen in Deutschland : empirische Befunde mikroökonometrischer Analysen (Effectiveness of job creation schemes in Germany : empirical findings from microeconom," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 39(3/4), pages 329-345.
  10. Hujer, Reinhard & Thomsen, Stephan L., 2006. "Wirksamkeit von Arbeitsbeschaffungsmaßnahmen in Deutschland: Empirische Befunde mikroökonometrischer Analysen," ZEW Discussion Papers 06-54, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  11. Stephan, Gesine & Zickert, Kathi, 2008. "Participation of unemployment benefit recipients in active labor market programs : before and after the German labor market reforms," IAB Discussion Paper 200815, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  12. 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.
  13. 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.
  14. repec:iab:iabzaf:v:39:i:3/4:p:329-345 is not listed on IDEAS

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