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Do German Welfare-to-Work Programmes Reduce Welfare and Increase Work? Author info | Abstract | Publisher info | Download info | Related research | Statistics Martin Huber ()
Michael Lechner ()
Conny Wunsch ()
Thomas Walter ()
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Many Western economies have reformed their welfare systems with the aim of activating welfare recipients by increasing welfare-to-work programmes and job search enforcement. We evaluate the three most important German welfare-to-work programmes implemented after a major reform in January 2005 ("Hartz IV"). Our analysis is based on a unique combination of large scale survey and administrative data that is unusually rich with respect to individual, household, agency level, and regional information. We use this richness to allow for a selection-on-observables approach when doing the econometric evaluation. We find that short-term training programmes on average increase their participants' employment perspectives and that all programmes induce further programme participation. We also show that there is considerable effect heterogeneity across different subgroups of participants that could be exploited to improve the allocation of welfare recipients to the specific programmes and thus increase overall programme effectiveness
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Paper provided by Department of Economics, University of St. Gallen in its series University of St. Gallen Department of Economics working paper series 2009 with number
2009-03.
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Length: 39 pages
Date of creation: Mar 2009Date of revision:
Handle: RePEc:usg:dp2009:2009-03Contact details of provider: Postal: Dufourstrasse 50, CH - 9000 St.Gallen Email: Web page: http://www.vwa.unisg.ch/ More information through EDIRC
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Keywords: Welfare-to-work policies ; propensity score matching ; programme evaluation ; panel data ; targeting ; Other versions of this item:
Paper Huber, Martin & Lechner, Michael & Wunsch, Conny & Walter, Thomas, 2009.
"Do German Welfare-to-Work Programmes Reduce Welfare and Increase Work? ,"
IZA Discussion Papers
4090, Institute for the Study of Labor (IZA).
[Downloadable!] Huber, Martin & Lechner, Michael & Walter, Thomas & Wunsch, Conny, 2009.
"Do German Welfare-to-Work Programmes Reduce Welfare and Increase Work? ,"
CEPR Discussion Papers
7238, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Find related papers by JEL classification: J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy
This paper has been announced in the following NEP Reports :
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Other versions:
Michael Lechner & Ruth Miquel & Conny Wunsch, 2005.
"The Curse and Blessing of Training the Unemployed in a Changing Economy: The Case of East Germany after Unification ,"
University of St. Gallen Department of Economics working paper series 2005
2005-15, Department of Economics, University of St. Gallen.
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IZA Discussion Papers
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"The curse and blessing of training the unemployed in a changing economy : the case of East Germany after unification ,"
IAB Discussion Paper
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IAB Discussion Paper
200729, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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Michael Lechner & Conny Wunsch, 2006.
"Are Training Programs More Effective When Unemployment Is High? ,"
University of St. Gallen Department of Economics working paper series 2006
2006-23, Department of Economics, University of St. Gallen.
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Other versions:
Lechner, Michael & Wunsch, Conny, 2006.
"Are Training Programs More Effective When Unemployment Is High? ,"
CEPR Discussion Papers
5920, C.E.P.R. Discussion Papers.
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"Are Training Programs More Effective When Unemployment Is High? ,"
IZA Discussion Papers
2355, Institute for the Study of Labor (IZA).
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IAB Discussion Paper
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"Are Training Programs More Effective When Unemployment Is High? ,"
Journal of Labor Economics ,
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"A fistful of Euros: Does One-Euro-Job participation lead means-tested benefit recipients into regular jobs and out of unemployment benefit II receipt? ,"
IAB Discussion Paper
200732, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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Guido W. Imbens, 2004.
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The Review of Economics and Statistics ,
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Other versions: Jacobi, Lena & Kluve, Jochen, 2007.
"Before and after the Hartz reforms: The performance of active labour market policy in Germany ,"
Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research ,
Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(1), pages 45-64.
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van Ours, Jan C., 2004.
"The locking-in effect of subsidized jobs ,"
Journal of Comparative Economics ,
Elsevier, vol. 32(1), pages 37-55, March.
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van Ours, Jan C., 2002.
"The Locking-in Effect of Subsidized Jobs ,"
IZA Discussion Papers
527, Institute for the Study of Labor (IZA).
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CEPR Discussion Papers
3489, C.E.P.R. Discussion Papers.
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William Davidson Institute Working Papers Series
474, William Davidson Institute at the University of Michigan Stephen M. Ross Business School.
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Econometrica ,
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IAB Discussion Paper
200508, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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Caliendo, Marco & Hujer, Reinhard & Thomsen, Stephan L., 2005.
"Identifying Effect Heterogeneity to Improve the Effiency of Job Creation Schemes in Germany? ,"
ZEW Discussion Papers
05-21, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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"Identifying effect heterogeneity to improve the efficiency of job creation schemes in Germany ,"
Applied Economics ,
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IAB Discussion Paper
200820, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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6306, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Conny Wunsch & Michael Lechner, 2007.
"What Did All the Money Do? On the General Ineffectiveness of Recent West German Labour Market Programmes ,"
University of St. Gallen Department of Economics working paper series 2007
2007-19, Department of Economics, University of St. Gallen.
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