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New Evidence on the Effects of Job Creation Schemes in Germany - A Matching Approach with Threefold Heterogeneity

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Author Info

  • Hujer, Reinhard

    ()
    (Goethe University Frankfurt)

  • Caliendo, Marco

    ()
    (University of Potsdam)

  • Thomsen, Stephan Lothar

    ()
    (NIW Hannover)

Abstract

This paper evaluates the effects of job creation schemes on the participating individuals in Germany. Since previous empirical studies of these measures have been based on relatively small datasets and focussed on East Germany, this is the first study which allows to draw policy-relevant conclusions. The very informative and exhaustive dataset at hand not only justifies the application of a matching estimator but also allows to take account of threefold heterogeneity. The recently developed multiple treatment framework is used to evaluate the effects with respect to regional, individual and programme heterogeneity. The results show considerable differences with respect to these sources of heterogeneity, but the overall finding is very clear. At the end of our observation period, that is two years after the start of the programmes, participants in job creation schemes have a significantly lower success probability on the labour market in comparison to matched non-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 750.

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Length: 37 pages
Date of creation: Apr 2003
Date of revision:
Publication status: published in: Research in Economics, 2004, 58(4), 257-302
Handle: RePEc:iza:izadps:dp750

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Related research

Keywords: heterogeneity; multiple treatment; job creation schemes; matching; evaluation;

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  1. Michael Lechner, 2002. "Program Heterogeneity And Propensity Score Matching: An Application To The Evaluation Of Active Labor Market Policies," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 205-220, May.
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