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The Threat Effect of Participation in Active Labor Market Programs on Job Search Behavior of Migrants in Germany

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  • Bergemann, Annette
  • Caliendo, Marco
  • van den Berg, Gerard J
  • Zimmermann, Klaus F

Abstract

Labor market programs may affect unemployed individuals’ behavior before they enroll. Such ex ante effects may differ according to ethnic origin. We apply a novel method that relates self-reported perceived treatment rates and job search behavioral outcomes, such as the reservation wage or search intensity, to each other. We compare German native workers with migrants with a Turkish origin or Central and Eastern European (including Russian) background. Job search theory is used to derive theoretical predictions. We examine the omnibus ex ante effect of the German ALMP system, using the novel IZA Evaluation Data Set, which includes self-reported assessments of the variables of interest as well as an unusually detailed amount of information on behavior, attitudes and past outcomes. We find that the ex ante threat effect on the reservation wage and search effort varies considerably among the groups considered.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8295.

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Date of creation: Mar 2011
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Handle: RePEc:cpr:ceprdp:8295

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Keywords: active labor market policy; expectations; immigrants; policy evaluation; program evaluation; reservation wage; search effort; unemployment duration;

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References

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  1. Amelie F. Constant & Annabelle Krause & Ulf Rinne & Klaus F. Zimmermann, 2010. "Economic Preferences and Attitudes of the Unemployed: Are Natives and Second Generation Migrants Alike?," Discussion Papers of DIW Berlin 1088, DIW Berlin, German Institute for Economic Research.
  2. van den Bergh, Gerhard & van deer Klaauw, Bas, 2001. "Counseling and monitoring of unemployed workers: theory and evidence from a controlled social experiment," Working Paper Series 2001:12, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  3. Borghans, Lex & Duckworth, Angela Lee & Heckman, James J. & Weel, Bas ter, 2008. "The Economics and Psychology of Personality Traits," MERIT Working Papers 010, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  4. Huber, Martin & Lechner, Michael & Wunsch, Conny & Walter, Thomas, 2009. "Do German Welfare-to-Work Programmes Reduce Welfare and Increase Work?," IZA Discussion Papers 4090, Institute for the Study of Labor (IZA).
  5. Giacomo De Giorgi, 2005. "Long-term effects of a mandatory multistage program: the New Deal for young people in the UK," IFS Working Papers W05/08, Institute for Fiscal Studies.
  6. Blundell, Richard & Costa Dias, Monica, 2008. "Alternative Approaches to Evaluation in Empirical Microeconomics," IZA Discussion Papers 3800, Institute for the Study of Labor (IZA).
  7. Jaap H. Abbring & Gerard J. van den Berg, 2005. "Social Experiments and Instrumental Variables with Duration Outcomes," Tinbergen Institute Discussion Papers 05-047/3, Tinbergen Institute.
  8. Guido M. Imbens & Jeffrey M. Wooldridge, 2008. "Recent Developments in the Econometrics of Program Evaluation," NBER Working Papers 14251, National Bureau of Economic Research, Inc.
  9. Amelie Constant & Annabelle Krause & Ulf Rinne & Klaus F. Zimmermann, 2010. "Reservation Wages of First and Second Generation Migrants," Discussion Papers of DIW Berlin 1089, DIW Berlin, German Institute for Economic Research.
  10. Marco Caliendo & Steffen Künn, 2010. "Start-up Subsidies for the Unemployed: Long-Term Evidence and Effect Heterogeneity," Discussion Papers of DIW Berlin 985, DIW Berlin, German Institute for Economic Research.
  11. Werner Eichhorst & Klaus F. Zimmermann, 2007. "And Then There Were Four...How Many (and Which) Measures of Active Labor Market Policy Do We Still Need?," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 53(3), pages 243-272.
  12. Zijl, Marloes & van den Berg, Gerard J & Heyma, Arjan, 2004. "Stepping-stones for the unemployed: The effect of temporary jobs on the duration until regular work," Working Paper Series 2004:19, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  13. Caliendo, Marco & Falk, Armin & Kaiser, Lutz C. & Schneider, Hilmar & Uhlendorff, Arne & van den Berg, Gerard J. & Zimmermann, Klaus F., 2010. "The IZA Evaluation Dataset: Towards Evidence-Based Labor Policy-Making," IZA Discussion Papers 5400, Institute for the Study of Labor (IZA).
  14. 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.
  15. Dan A. Black & Jeffrey A. Smith & Mark C. Berger & Brett J. Noel, 2003. "Is the Threat of Reemployment Services More Effective Than the Services Themselves? Evidence from Random Assignment in the UI System," American Economic Review, American Economic Association, vol. 93(4), pages 1313-1327, September.
  16. 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.
  17. Lalive, R. & Ours, J.C. van & Zweimüller, J., 2002. "The Effect of Benefit Sanctions on the Duration of Unemployment," Discussion Paper 2002-19, Tilburg University, Center for Economic Research.
  18. van den Berg, Gerard J. & Bergemann, Annette & Caliendo, Marco, 2008. "The Effect of Active Labor Market Programs on Not-Yet Treated Unemployed Individuals," IZA Discussion Papers 3825, Institute for the Study of Labor (IZA).
  19. 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.
  20. Bernhard, Sarah & Hohmeyer, Katrin & Jozwiak, Eva & Koch, Susanne & Kruppe, Thomas & Stephan, Gesine & Wolff, Joachim, 2008. "Aktive Arbeitsmarktpolitik in Deutschland und ihre Wirkungen," IAB-Forschungsbericht 200802, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  21. Michael Rosholm & Michael Svarer, 2008. "The Threat Effect of Active Labour Market Programmes," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(2), pages 385-401, 06.
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  1. The Threat Effect of Participation in Active Labor Market Programs on Job Search Behavior of Migrants in Germany
    by maximorossi in NEP-LTV blog on 2011-03-21 21:33:45
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Cited by:
  1. Arni, Patrick & Caliendo, Marco & Künn, Steffen & Zimmermann, Klaus F., 2014. "The IZA Evaluation Dataset Survey: A Scientific Use File," IZA Discussion Papers 7971, Institute for the Study of Labor (IZA).
  2. Caliendo, Marco & Uhlendorff, Arne, 2010. "Determinanten des Suchverhaltens von Arbeitslosen: Ausgewählte Erkenntnisse basierend auf dem IZA Evaluationsdatensatz," IZA Discussion Papers 5379, Institute for the Study of Labor (IZA).
  3. Panagiotis Nanos & Christian Schluter, 2013. "The Composition of Wage Differentials between Migrants and Natives," Papers 1306.1781, arXiv.org, revised Oct 2013.
  4. Caliendo, Marco & Falk, Armin & Kaiser, Lutz C. & Schneider, Hilmar & Uhlendorff, Arne & van den Berg, Gerard J. & Zimmermann, Klaus F., 2010. "The IZA Evaluation Dataset: Towards Evidence-Based Labor Policy-Making," IZA Discussion Papers 5400, Institute for the Study of Labor (IZA).

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