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Effectiveness of One-Euro-Jobs: Do programme characteristics matter?

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  • Hohmeyer, Katrin

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

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    Abstract

    "Recent labour market reforms in Germany introduced a workfare programme called One-Euro-Jobs with roughly 700,000 means-tested benefit recipients participating per year. In programme design leeway is given to local actors to respond to regional and individual factors. The legislature has set only key features of One-Euro-Jobs: One-Euro-Jobs are required to be additional and temporary jobs of public interest. Using administrative data for participants who entered the programme in spring 2005 this paper investigates medium-term effects of the programme and the association between flexibility in design and effect heterogeneity. First, effects of different types of One-Euro-Jobs (according to planned duration and weekly working hours) compared to non-participation ('waiting') are estimated and second, programme types are compared directly by pairwise matching to disentangle selection and programme effects. As expected lock-in effects are larger for participation with a longer planned duration, whereas this is not the case for more intensive programmes in terms of working hours. In the medium term, One-Euro-Jobs do not generally increase the employment prospects for men in East Germany beyond two years after programme start and longer and more intensive participations even decrease employment prospects. In West Germany, One-Euro-Jobs in general increase the employment chances and longer participations lead to slightly higher employment opportunities roughly two years after programme start. The initial advantages of short participations decrease over time. " (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 200920.

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    Length: 60 pages
    Date of creation: 20 Aug 2009
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    Publication status: published in: Applied Economics, Vol. 44, No. 33 (2012), p. 4469-4484
    Handle: RePEc:iab:iabdpa:200920

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    Keywords: Arbeitsgelegenheit - Erfolgskontrolle; berufliche Reintegration; Arbeitslosengeld II-Empfänger; Workfare; Arbeitsmarktchancen; Geschlechterverteilung; Westdeutschland; Ostdeutschland; Bundesrepublik Deutschland;

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    Cited by:
    1. 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).
    2. Thomsen, Stephan L. & Walter, Thomas, 2010. "Temporary extra jobs for immigrants: Merging lane to employment or dead-end road in welfare?," ZEW Discussion Papers 10-027, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    3. Caliendo, Marco, 2009. "Income Support Systems, Labor Market Policies and Labor Supply: The German Experience," IZA Discussion Papers 4665, Institute for the Study of Labor (IZA).
    4. Christian Hohendanner, 2011. "Ein-Euro-Jobs und regulaere Beschaeftigung," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 231(2), pages 210-246, April.

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