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The effectiveness of sequences of One-Euro Jobs : is it better to do more One-Euro-Jobs or to wait?

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  • Dengler, Katharina

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

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    Abstract

    "Many studies have analysed the effectiveness of single active labour market programmes (ALMPs) for welfare recipients in different countries. As empirical evidence reveals that welfare recipients in Germany often participate in multiple programmes, I evaluate the sequential participation of unemployment benefit II (UB-II)-recipients in ALMPs in Germany. My study uses comprehensive, administrative data to control for dynamic selection that arises in the evaluation of sequences. Using a dynamic matching approach and an inflow sample of UB-II-recipients, I analyse the effects of sequences of One-Euro-Jobs and/or UB-II-receipt on labour market outcomes. I focus on two questions: Is participating in two consecutive One-Euro-Jobs compared with receiving UB II for two consecutive periods better for individuals' employment outcomes? Is it more effective to take part in a One-Euro-Job directly after entry into UB II or in a later period? For female participants in One-Euro-Jobs in the first period, especially in West Germany, I find that participating in two consecutive One- Euro-Jobs compared with receiving UB-II-receipt for two consecutive periods better facilitates integration into regular employment. It is also more effective for participants in One-Euro- Jobs in the first period to take part in a One-Euro-Job directly after entry into UB II rather than take part in a One-Euro-Job in a later period, especially for East German men (although not for West German women). However, I also find evidence of so-called programme careers and stepwise integration into regular employment through direct job creation schemes (without One-Euro-Jobs)." (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 201316.

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    Length: 79 pages
    Date of creation: 09 Oct 2013
    Date of revision:
    Handle: RePEc:iab:iabdpa:201316

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    Keywords: Arbeitsgelegenheit; arbeitsmarktpolitische Maßnahme; Arbeitslosengeld II-Empfänger; aktivierende Arbeitsmarktpolitik - Erfolgskontrolle; arbeitslose Frauen; arbeitslose Männer; berufliche Reintegration; Beschäftigungseffekte; matching; Arbeitsmarktchancen; Beschäftigungsfähigkeit; Westdeutschland; Ostdeutschland; Bundesrepublik Deutschland;

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    1. Pissarides, C A, 1979. "Job Matchings with State Employment Agencies and Random Search," Economic Journal, Royal Economic Society, vol. 89(356), pages 818-33, December.
    2. K. Hohmeyer, 2012. "Effectiveness of One-Euro-Jobs: do programme characteristics matter?," Applied Economics, Taylor & Francis Journals, vol. 44(34), pages 4469-4484, December.
    3. Michael Lechner, 2004. "Sequential Matching Estimation of Dynamic Causal Models," University of St. Gallen Department of Economics working paper series 2004 2004-06, Department of Economics, University of St. Gallen.
    4. Michael Gerfin & Michael Lechner, 2002. "A Microeconometric Evaluation of the Active Labour Market Policy in Switzerland," Economic Journal, Royal Economic Society, vol. 112(482), pages 854-893, October.
    5. Michael Lechner & Ruth Miquel, 2010. "Identification of the effects of dynamic treatments by sequential conditional independence assumptions," Empirical Economics, Springer, vol. 39(1), pages 111-137, August.
    6. Rafael Lalive & JanC. vanOurs & Josef Zweimüller, 2008. "The Impact of Active Labour Market Programmes on The Duration of Unemployment in Switzerland," Economic Journal, Royal Economic Society, vol. 118(525), pages 235-257, 01.
    7. Martin Huber & Michael Lechner & Conny Wunsch & Thomas Walter, 2011. "Do German Welfare‐to‐Work Programmes Reduce Welfare Dependency and Increase Employment?," German Economic Review, Verein für Socialpolitik, vol. 12(2), pages 182-204, 05.
    8. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, vol. 66(5), pages 1017-1098, September.
    9. Eichhorst, Werner & Grienberger-Zingerle, Maria & Konle-Seidl, Regina, 2006. "Activation Policies in Germany: From Status Protection to Basic Income Support," IZA Discussion Papers 2514, Institute for the Study of Labor (IZA).
    10. 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.
    11. 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.
    12. Lechner, Michael, 2009. "Sequential Causal Models for the Evaluation of Labor Market Programs," Journal of Business & Economic Statistics, American Statistical Association, vol. 27, pages 71-83.
    13. Katrin Hohmeyer & Eva Kopf, 2009. "Who is targeted by One-Euro-Jobs? A Selectivity Analysis," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 129(4), pages 597-636.
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