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Oekonometrie vs. Projektdesign: Lehren aus der Evaluation eines Modellprojekts zur Umsetzung des Workfare-Konzepts

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Author Info

  • Hilmar Schneider

    () (IZA Bonn)

  • Arne Uhlendorff

    () (Universität Mannheim)

  • Klaus F. Zimmermann

    () (IZA Bonn)

Abstract

A common problem of welfare states consists of a high unemployment risk for low-skilled workers. This is often attributed to a lack of jobs for the low-skilled, but it may as well be caused by a lack of incentives to work. Low-skilled workers are easily substitutable and therefore have little bargaining power. Hence, they are typically dependent on low-paid jobs. This may create disincentives towork, if the achievable marketwage does not sufficiently exceed the welfare level. Workfare could be an efficient strategy to overcome such disincentives by introducing a work requirement for unemployed welfare recipients. In our paper we investigate the importance of such a supply side policy. We evaluate a pilot workfare project of a Berlin city community to integrate young people in social assistance into the labor market. Reference data are generated in collaboration with the German Employment Office. The participation effect is found to be positive and of relevant size, but not statistically significant. This indicates that selection biases detected in the allocation process of individuals to the program can be adjusted by econometric techniques, but only at the prize of reduced significance levels. Given the small sample sizes of pilot projects this calls for social experiments in controlled project designs.

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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): 233 (2013)
Issue (Month): 1 (January)
Pages: 65-85

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Handle: RePEc:jns:jbstat:v:233:y:2013:i:1:p:65-85

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Related research

Keywords: Workfare; labor supply; evaluation; social experiments;

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References

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  1. David E. Card & Pablo Ibarraran & Juan Miguel Villa, 2011. "Building in an Evaluation Component for Active Labor Market Programs: A Practitioner's Guide," SPD Working Papers 1101, Inter-American Development Bank, Office of Strategic Planning and Development Effectiveness (SPD).
  2. Peter Jacobebbinghaus & Stefan Seth, 2007. "European Data Watch: The German Integrated Employment Biographies Sample IEBS," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(2), pages 335-342.
  3. Louis N. Christofides, 2000. "Social assistance and labour supply," Canadian Journal of Economics, Canadian Economics Association, vol. 33(3), pages 715-741, August.
  4. 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.
  5. Richard Blundell & Monica Costa Dias, 2009. "Alternative Approaches to Evaluation in Empirical Microeconomics," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
  6. Hilmar Schneider & Arne Uhlendorff, 2005. "Transitions from Welfare to Employment: Does the Ratio between Labor Income and Social Assistance Matter?," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 125(1), pages 51-61.
  7. John A. List, 2011. "Why Economists Should Conduct Field Experiments and 14 Tips for Pulling One Off," Journal of Economic Perspectives, American Economic Association, vol. 25(3), pages 3-16, Summer.
  8. James J. Heckman & Jeffrey A. Smith, 1995. "Assessing the Case for Social Experiments," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 85-110, Spring.
  9. Holger Bonin & Armin Falk & Hilmar Schneider, 2007. "Workfare – praktikabel und gerecht," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 60(04), pages 33-37, 02.
  10. Schneider, Hilmar & Zimmermann, Klaus F. & Bonin, Holger & Brenke, Karl & Haisken-DeNew, John P. & Kempe, Wolfram, 2002. "Report No. 5: Beschäftigungspotenziale einer dualen Förderstrategie im Niedriglohnbereich," IZA Research Reports 5, Institute for the Study of Labor (IZA).
  11. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
  12. Holger Bonin & Wolfram Kempe & Hilmar Schneider, 2003. "Kombilohn oder Workfare?: Zur Wirksamkeit zweier arbeitsmarktpolitischer Strategien," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 72(1), pages 51-67.
  13. Rebecca M. Blank, 2002. "Evaluating Welfare Reform in the United States," Journal of Economic Literature, American Economic Association, vol. 40(4), pages 1105-1166, December.
  14. Marco Caliendo & Viktor Steiner, 2005. "Aktive Arbeitsmarktpolitik in Deutschland: Bestandsaufnahme und Bewertung der mikroökonomischen Evaluationsergebnisse," Discussion Papers of DIW Berlin 515, DIW Berlin, German Institute for Economic Research.
  15. Marco Caliendo & Sabine Kopeinig, 2005. "Some Practical Guidance for the Implementation of Propensity Score Matching," Discussion Papers of DIW Berlin 485, DIW Berlin, German Institute for Economic Research.
  16. Chiburis, Richard C. & Das, Jishnu & Lokshin, Michael, 2011. "A practical comparison of the bivariate probit and linear IV estimators," Policy Research Working Paper Series 5601, The World Bank.
  17. Chiara Monfardini & Rosalba Radice, 2008. "Testing Exogeneity in the Bivariate Probit Model: A Monte Carlo Study," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(2), pages 271-282, 04.
  18. repec:feb:artefa:0110 is not listed on IDEAS
  19. Ashenfelter, Orley, 1987. "The case for evaluating training programs with randomized trials," Economics of Education Review, Elsevier, vol. 6(4), pages 333-338, August.
  20. Schneider, Hilmar & Uhlendorff, Arne & Zimmermann, Klaus F., 2010. "Mit Workfare aus der Sozialhilfe? Lehren aus einem Modellprojekt," IZA Standpunkte 33, Institute for the Study of Labor (IZA).
  21. Hilmar Schneider, 2008. "Die Veränderung der Lohnersatzleistungen und die Reform der Vermittlungsprozesse im SGB III," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 77(1), pages 20-37.
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Cited by:
  1. Arni, Patrick, 2012. "Kausale Evaluation von Pilotprojekten: Die Nutzung von Randomisierung in der Praxis," IZA Standpunkte 52, Institute for the Study of Labor (IZA).

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