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Wage subsidies for needy job-seekers and their effect on individual labour market outcomes after the German reforms

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Author Info

  • Bernhard, Sarah

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

  • Gartner, Hermann

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

  • Stephan, Gesine

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

Abstract

"In Germany, since 2005 needy job-seekers without access to earnings-related and insurance-paid 'unemployment benefit I' are entitled to means-tested and tax-funded 'unemployment benefit II'. Several active labour market programmes support the integration of these needy job-seekers into the labour market. Our paper estimates the average effect of targeted wage subsidies - paid to employers for a limited period of time - on the subsequent labour market prospects of participating needy job-seekers. We apply propensity score matching to compare participants with a group of similar non-participants. The results show that wage subsidies had in fact large and significant favourable effects: 20 months after taking up a subsidised job, the share of persons in regular employment is nearly 40 percentage points higher across participants. Estimated effects on the shares not unemployed and the share no longer receiving 'unemployment benefit II' are slightly smaller." (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 200821.

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Length: 27 pages
Date of creation: 21 May 2008
Date of revision:
Handle: RePEc:iab:iabdpa:200821

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Keywords: Arbeitslosengeld II-Empfänger; Eingliederungszuschuss - Erfolgskontrolle; Arbeitsmarktchancen;

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References

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Citations

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Cited by:
  1. Lechner, Michael & Wunsch, Conny & Scioch, Patrycja, 2013. "Do Firms Benefit from Active Labour Market Policies?," IZA Discussion Papers 7614, Institute for the Study of Labor (IZA).
  2. Schuenemann, Benjamin & Lechner, Michael & Wunsch, Conny, 2011. "Do Long-term Unemployed Workers Benefit from Targeted Wage Subsidies," Economics Working Paper Series 1126, University of St. Gallen, School of Economics and Political Science.
  3. Caliendo, Marco & Hogenacker, Jens, 2012. "The German Labor Market after the Great Recession: Successful Reforms and Future Challenges," IZA Discussion Papers 6810, Institute for the Study of Labor (IZA).
  4. Rainer Eppel & Helmut Mahringer, 2012. "Do wage subsidies work in boosting economic inclusion? Evidence on e," EcoMod2012 4065, EcoMod.
  5. 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].
  6. Butschek, Sebastian & Walter, Thomas, 2013. "What active labour market programmes work for immigrants in Europe? A meta-analysis of the evaluation literature," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 13-056, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  7. Rainer Eppel & Helmut Mahringer, 2013. "Do Wage Subsidies Work in Boosting Economic Inclusion? Evidence on Effect Heterogeneity in Austria," WIFO Working Papers, WIFO 456, WIFO.
  8. Walter, Thomas & Butschek, Sebastian, 2013. "What Active Labour Market Programmes Work for Immigrants in Europe?," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79745, Verein für Socialpolitik / German Economic Association.
  9. Caliendo, Marco, 2009. "Income support systems, labor market policies and labor supply: the German experience," Working Paper Series, IFAU - Institute for Evaluation of Labour Market and Education Policy 2009:26, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  10. Zabel, Cordula, 2011. "Lone mothers' participation in labor market programs for means-tested benefit recipients in Germany," IAB Discussion Paper 201114, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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