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Macroeconomic Impacts of ALMP on the Matching Process in West Germany

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  • Hujer, Reinhard

    (Goethe University Frankfurt)

  • Zeiss, Christopher

    (Goethe University Frankfurt)

Abstract

This paper investigates the macroeconomic effects of job creation schemes and vocational training on the matching processes in West Germany. The empirical analysis is based on regional data for local employment office districts for the period from 1999 to 2003. The empirical model relies on a dynamic version of a matching function augmented by ALMP. In order to obtain consistent estimates in the presence of a dynamic panel data model, a firstdifferences GMM estimator and a transformed maximum likelihood estimator are applied. Furthermore the paper considers the endogeneity problem of the policy measures. The results obtained from our estimates indicate that vocational training does not significantly affect the matching process and that job creation schemes have a negative effect.

Suggested Citation

  • Hujer, Reinhard & Zeiss, Christopher, 2003. "Macroeconomic Impacts of ALMP on the Matching Process in West Germany," IZA Discussion Papers 915, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp915
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    References listed on IDEAS

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    Cited by:

    1. Hujer, Reinhard & Zeiss, Christopher, 2005. "Vermittlungsgutscheine: Zwischenergebnisse der Begleitforschung 2004 : Teil 4: Makroökonomische Wirkungsanalyse," IAB-Forschungsbericht 200504, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    2. Fertig, Michael & Jacobi, Lena & Kluve, Jochen & Schaffner, Sandra & Schmidt, Christoph M. & Schumacher, Peter Michael & Tamm, Marcus & Apel, Helmut & Friedrich, Werner & Hägele, Helmut & Buscher, Her, 2006. "Evaluation der Umsetzung der Vorschläge der Hartz-Kommission. Arbeitspaket 1, Modul 1f. Teil 2: Benchmarking und makroökonomische Analysen," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 70876.
    3. M. Agovino & A. Rapposelli, 2017. "Speculation on a Flexicurity Index for Disabled People: The Italian Case," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 130(1), pages 389-414, January.
    4. 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 refor," IAB-Discussion Paper 201117, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Kluve, Jochen & Fertig, Michael & Jacobi, Lena & Nima, Leonhard & Schaffner, Sandra & Schmidt, Christoph M. & Card, David & Góra, Marek & Jensen, Peter & Leetmaa, Reelika & Patacchini, Eleonora & van , 2005. "Study on the effectiveness of ALMPs: Research project for the European Commission, DG Employment, Social Affairs and Equal Opportunities. Final report," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 69929.
    6. Sabine Engelmann & Beate Schirwitz & Marcel Thum, 2009. "Erstellung von Unbedenklichkeitsbescheinigungen im Bereich der öffentlich geförderten Beschäftigung," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 47.
    7. Juan González Alegre, 2017. "The Efficiency of Active Labour Market Policies in the European Union: Does It Make Sense Increasing the Bill?," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 67(3), pages 333-357, September.
    8. Rüdiger Wapler & Daniel Werner & Katja Wolf, 2018. "Active labour market policies in Germany: do regional labour markets benefit?," Applied Economics, Taylor & Francis Journals, vol. 50(51), pages 5561-5578, November.
    9. Altavilla, Carlo & Caroleo, Floro Ernesto, 2009. "Unintended Effects of National-based Active Labour Market Policies," IZA Discussion Papers 4045, Institute of Labor Economics (IZA).
    10. Gerd Heyer & Susanne Koch & Gesine Stephan & Joachim Wolff, 2012. "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 ref," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 45(1), pages 41-62, March.
    11. Massimiliano Agovino & Agnese Rapposelli, 2017. "Macroeconomic impact of flexicurity on the integration of people with disabilities into the labour market. A two-regime spatial autoregressive analysis," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(1), pages 307-334, January.
    12. Gerd Heyer & Susanne Koch & Gesine Stephan & Joachim Wolff, 2012. "Evaluation der aktiven Arbeitsmarktpolitik: Ein Sachstandsbericht für die Instrumentenreform 2011," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 45(1), pages 41-62, March.

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    More about this item

    Keywords

    matching function; dynamic panel data model; Active Labour Market Policy; search models;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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