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Vouchers and Caseworkers in Public Training Programs: Evidence from the Hartz Reform in Germany

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Author Info

  • Rinne, Ulf

    ()
    (IZA)

  • Uhlendorff, Arne

    ()
    (University of Mannheim)

  • Zhao, Zhong

    ()
    (Renmin University of China)

Abstract

This paper studies the role of training vouchers and caseworkers in public training programs. Using a rich administrative data set, we apply matching and regression methods to measure the effect of the Hartz reform in Germany, which introduced training vouchers and imposed more selective criteria on participants. Besides estimating the overall reform effect, we isolate the effect induced by changes in the composition of program participants due to stricter selection by the caseworkers (selection effect) from the effect based on the introduction of vouchers (voucher effect). Analyzing the most important type of training in Germany, we find a slightly positive impact of the reform. Our decomposition results suggest that the selection effect is − if at all − slightly negative, and that the voucher effect increased both, the employment probability and earnings of the participants.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3910.

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Length: 51 pages
Date of creation: Dec 2008
Date of revision:
Handle: RePEc:iza:izadps:dp3910

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Related research

Keywords: voucher; matching; program evaluation; caseworker; active labor market policy; training; Hartz reform;

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Cited by:
  1. Anita Wölfl & Juan S. Mora-Sanguinetti, 2011. "Reforming the Labour Market in Spain," OECD Economics Department Working Papers 845, OECD Publishing.
  2. Paul, Marie & Dörr, Annabelle & Fitzenberger, Bernd & Kruppe, Thomas & Strittmatter, Anthony, 2013. "The Award of a Training Voucher and Labor Market Outcomes," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79918, Verein für Socialpolitik / German Economic Association.
  3. 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.

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