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Participation of unemployment benefit recipients in active labor market programs : before and after the German labor market reforms

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  • Stephan, Gesine

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

  • Zickert, Kathi

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

Abstract

"Between 2005 and 2007 the German government raised a per-capita amount of around 10.000 Euros for each transition out of unemployment benefit receipt into basic social care, to be paid by the unemployment insurance. The so called 'Aussteuerungsbetrag' set strong incentives that investments in active labor market programs for unemployment benefit recipients should pay off - in terms of an exit from registered unemployment - before a transition into basic social care for needy jobseekers occurred. This raised considerable public concerns that less programs would be granted, in particular for hard-to-place workers. Our paper analyzes if these concerns were justified. We compare four cohorts, eligible for unemployment benefits at the beginning of their unemployment spell during March of the years 2003 to 2006. We conduct some descriptive analyses and estimate piecewise constant exponential hazard models to investigate the correlation between individual characteristics and transition rates into programs. The results show that transition rates into programs were in fact low across the 2005 cohort, but rather high for the 2006 cohort. The expectation that particular disadvantaged groups of unemployed would participate less in active labor market programs in the postreform period is not confirmed; their transition rates into programs were significantly higher across the 2006 cohort than in pre-reform cohorts." (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 200815.

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Length: 32 pages
Date of creation: 25 Mar 2008
Date of revision:
Handle: RePEc:iab:iabdpa:200815

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Keywords: arbeitsmarktpolitische Maßnahme - Zu- und Abgänge; Hartz-Reform - Erfolgskontrolle; Aussteuerungsbetrag - Auswirkungen; Teilnehmerstruktur; Arbeitslose; schwervermittelbare Arbeitslose;

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References

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  1. Biewen, Martin & Fitzenberger, Bernd & Osikominu, Aderonke & Waller, Marie, 2007. "Which Program for Whom? Evidence on the Comparative Effectiveness of Public Sponsored Training Programs in Germany," IZA Discussion Papers 2885, Institute for the Study of Labor (IZA).
  2. Marco Caliendo & Reinhard Hujer & Stephan L. Thomsen, 2006. "Sectoral Heterogeneity in the Employment Effects of Job Creation Schemes in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 226(2), pages 139-179, March.
  3. Fitzenberger, Bernd & Völter, Robert, 2007. "Long-Run Effects of Training Programs for the Unemployed in East Germany," IZA Discussion Papers 2630, Institute for the Study of Labor (IZA).
  4. Marco Caliendo & Reinhard Hujer & Stephan Thomsen, 2008. "Identifying effect heterogeneity to improve the efficiency of job creation schemes in Germany," Applied Economics, Taylor and Francis Journals, vol. 40(9), pages 1101-1122.
  5. Winterhager, Henrik & Heinze, Anja & Spermann, Alexander, 2006. "Deregulating Job Placement in Europe: A Microeconometric Evaluation of an Innovative Voucher Scheme in Germany," ZEW Discussion Papers 06-11, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  6. Lechner, Michael & Miquel, Ruth & Wunsch, Conny, 2004. "Long-Run Effects of Public Sector Sponsored Training in West Germany," IZA Discussion Papers 1443, Institute for the Study of Labor (IZA).
  7. 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).
  8. Ulf Rinne & Marc Schneider & Arne Uhlendorff, 2007. "Too Bad to Benefit?: Effect Heterogeneity of Public Training Programs," Discussion Papers of DIW Berlin 749, DIW Berlin, German Institute for Economic Research.
  9. Michael Lechner & Ruth Miquel & Conny Wunsch, 2007. "The Curse and Blessing of Training the Unemployed in a Changing Economy: The Case of East Germany After Unification," German Economic Review, Verein für Socialpolitik, vol. 8, pages 468-509, November.
  10. Osikominu, Aderonke & Fitzenberger, Bernd & Völter, Robert, 2006. "Get Training or Wait? Long-Run Employment Effects of Training Programs for the Unemployed in West Germany," ZEW Discussion Papers 06-39, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  11. Wolff, Joachim & Jozwiak, Eva, 2007. "Does short-term training activate means-tested unemployment benefit recipients in Germany?," IAB Discussion Paper 200729, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  12. Jaenichen, Ursula & Stephan, Gesine, 2007. "The effectiveness of targeted wage subsidies for hard-to-place workers," IAB Discussion Paper 200716, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  13. Fitzenberger, Bernd & Volter, Robert, 2007. "Long-run effects of training programs for the unemployed in East Germany," Labour Economics, Elsevier, vol. 14(4), pages 730-755, August.
  14. Kruppe, Thomas, 2008. "Selektivität bei der Einlösung von Bildungsgutscheinen," IAB Discussion Paper 200817, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  15. Fitzenberger, Bernd & Völter, Robert, 2007. "Long-run effects of training programs for the unemployed in East Germany," ZEW Discussion Papers 07-009, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  16. 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].
  17. Hujer, Reinhard & Thomsen, Stephan L., 2006. "How do employment effects of job creation schemes differ with respect to the foregoing unemployment duration?," ZEW Discussion Papers 06-47, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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Citations

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Cited by:
  1. Caliendo, Marco, 2009. "Income support systems, labor market policies and labor supply: the German experience," Working Paper Series 2009:26, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  2. Kruppe, Thomas, 2008. "Selektivität bei der Einlösung von Bildungsgutscheinen," IAB Discussion Paper 200817, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  3. Bernhard, Sarah & Gartner, Hermann & Stephan, Gesine, 2008. "Wage Subsidies for Needy Job-Seekers and Their Effect on Individual Labour Market Outcomes after the German Reforms," IZA Discussion Papers 3772, Institute for the Study of Labor (IZA).

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