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A fistful of Euros: Does One-Euro-Job participation lead means-tested benefit recipients into regular jobs and out of unemployment benefit II receipt?

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  • Hohmeyer, Katrin

    ()
    (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

  • Wolff, Joachim

    ()
    (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

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    Abstract

    "In 2005 a major reform of the German means-tested unemployment benefit system came into force. The reform aimed at activating benefit recipients, e.g., by a workfare programme, the so-called One-Euro-Job. This programme was implemented at a large scale. Participants receive their means-tested benefit and a small compensation of usually one to 1.5 EURO per hour worked. Participation typically lasts six months or less. We investigate the impact of One-Euro-Jobs for participants who entered the programme at the start of the year 2005. We apply propensity score matching to estimate the treatment effects on the outcomes regular employment, neither being registered as unemployed nor as job-seeker and no unemployment benefit II receipt. We observe these outcomes for about two years after programme start. The locking-in effects are small. Moreover, 20 months after programme there is a significant but small positive impact on the employment rate of female but not male participants. During the first two years after programme start, participation does not contribute to avoiding unemployment benefit II receipt. Our results imply that there is some effect heterogeneity: Participation reduces the employment rate of participants younger than 25 years, but raises it for some older participant groups. It is ineffective for participants who were recently employed, while it is effective for participants who lost their last contributory job between 1992 and 2000." (Author's abstract, IAB-Doku) ((en))

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    Bibliographic Info

    Paper provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its series IAB Discussion Paper with number 200732.

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    Length: 65 pages
    Date of creation: 20 Dec 2007
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    Handle: RePEc:iab:iabdpa:200732

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    Keywords: Arbeitsgelegenheit - Erfolgskontrolle; Teilnehmerstruktur; berufliche Reintegration; Wirkungsforschung; Altersstruktur; Geschlechterverteilung; Qualifikationsstruktur; Arbeitslosengeld II-Empfänger; Nationalität; Arbeitsförderung; Arbeitsmarktchancen; Ostdeutschland; Westdeutschland; Bundesrepublik Deutschland;

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    References

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    1. Lars Calmfors & Anders Forslund & Maria Hemström, 2002. "Does Active Labour Market Policy Work? Lessons from the Swedish Experiences," CESifo Working Paper Series 675, CESifo Group Munich.
    2. Gerfin, Michael & Lechner, Michael, 2001. "A Microeconometric Evaluation of Active Labour Market Policy in Switzerland," CEPR Discussion Papers 2993, C.E.P.R. Discussion Papers.
    3. Caliendo, Marco & Hujer, Reinhard & Thomsen, Stephan L., 2005. "Individual employment effects of job creation schemes in Germany with respect to sectoral heterogeneity," IAB Discussion Paper 200513, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. 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).
    5. 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.
    6. Wolfgang Ochel, 2004. "Welfare-to-Work Experiences with Specific Work-First Programmes in Selected Countries," CESifo Working Paper Series 1153, CESifo Group Munich.
    7. 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.
    8. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
    9. Alberto Abadie & Guido W. Imbens, 2006. "On the Failure of the Bootstrap for Matching Estimators," NBER Technical Working Papers 0325, National Bureau of Economic Research, Inc.
    10. Sascha O. Becker & Marco Caliendo, 2007. "mhbounds - Sensitivity Analysis for Average Treatment Effects," Discussion Papers of DIW Berlin 659, DIW Berlin, German Institute for Economic Research.
    11. Bolvig, Iben & Jensen, Peter & Rosholm, Michael, 2003. "The Employment Effects of Active Social Policy," IZA Discussion Papers 736, Institute for the Study of Labor (IZA).
    12. repec:iab:iabzaf:v:40:i:1:p:45-64 is not listed on IDEAS
    13. 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.
    14. repec:rus:hseeco:10108 is not listed on IDEAS
    15. Heinemann, Sarah & Gartner, Hermann & Jozwiak, Eva, 2006. "Arbeitsförderung für Langzeitarbeitslose : erste Befunde zu Eingliederungsleistungen des SGB III im Rechtskreis SGB II," IAB-Forschungsbericht 200603, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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    Citations

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    Cited by:
    1. Robert Jäckle & Marianne Müller & Martin Werding, 2008. "Die Wiesbadener »Alltags-Engel« Zeitarbeit in haushaltsnahen Dienstleistungen als arbeitsmarktpolitisches Instrument im SGB II," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 61(21), pages 16-25, November.
    2. Marco Caliendo & Jens Hogenacker, 2012. "The German labor market after the Great Recession: successful reforms and future challenges," IZA Journal of European Labor Studies, Springer, vol. 1(1), pages 1-24, December.
    3. Herwig Immervoll, 2010. "Minimum Income Benefits in OECD Countries: Policy Design, Effectiveness and Challenges," OECD Social, Employment and Migration Working Papers 100, OECD Publishing.
    4. Wolff, Joachim & Nivorozhkin, Anton, 2008. "Start me up: The effectiveness of a self-employment programme for needy unemployed people in Germany," IAB Discussion Paper 200820, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. 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.
    6. Hohmeyer, Katrin & Jozwiak, Eva, 2008. "Who is targeted by One-Euro-Jobs? : a selectivity analysis," IAB Discussion Paper 200808, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. 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].
    8. 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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