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Temporary extra jobs for immigrants: Merging lane to employment or dead-end road in welfare?

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  • Thomsen, Stephan L.
  • Walter, Thomas

Abstract

We evaluate the effects of the most frequently used German welfare-to-work program on the employment chances of immigrant welfare recipients. In particular, we investigate whether program effects differ between immigrants and natives and what might cause these potential differences. Our results reveal that the program fails to achieve its objectives. The effects are more adverse for natives, but the program does not help otherwise identical immigrants to leave the welfare system either. Therefore, the program is a dead-end road rather than a merging lane to regular employment both for natives and for immigrants. --

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Bibliographic Info

Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 10-027.

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Date of creation: 2010
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Handle: RePEc:zbw:zewdip:10027

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Keywords: Immigrants; employment programs; evaluation; decomposition of effects; Germany;

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References

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  1. 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, Duncker & Humblot, Berlin, vol. 129(4), pages 597-636.
  2. Hohmeyer, Katrin, 2009. "Effectiveness of One-Euro-Jobs: Do programme characteristics matter?," IAB Discussion Paper 200920, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  3. Martin, John P. & Grubb, David, 2001. "What works and for whom: a review of OECD countries' experiences with active labour market policies," Working Paper Series, IFAU - Institute for Evaluation of Labour Market and Education Policy 2001:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  4. Kluve, Jochen, 2010. "The effectiveness of European active labor market programs," Labour Economics, Elsevier, Elsevier, vol. 17(6), pages 904-918, December.
  5. Hujer, Reinhard & Thomsen, Stephan L., 2010. "How do the employment effects of job creation schemes differ with respect to the foregoing unemployment duration?," Labour Economics, Elsevier, Elsevier, vol. 17(1), pages 38-51, January.
  6. Clausen, Jens & Heinesen, Eskil & Hummelgaard, Hans & Husted, Leif & Rosholm, Michael, 2009. "The effect of integration policies on the time until regular employment of newly arrived immigrants: Evidence from Denmark," Labour Economics, Elsevier, Elsevier, vol. 16(4), pages 409-417, August.
  7. Cohen-Goldner, Sarit & Eckstein, Zvi, 2004. "Estimating the Return to Training and Occupational Experience: The Case of Female Immigrants," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4603, C.E.P.R. Discussion Papers.
  8. Rebecca M. Blank, 2002. "Evaluating Welfare Reform in the United States," Journal of Economic Literature, American Economic Association, vol. 40(4), pages 1105-1166, December.
  9. Calmfors, Lars, 1995. "Labour market policy and unemployment," European Economic Review, Elsevier, Elsevier, vol. 39(3-4), pages 583-592, April.
  10. 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.
  11. Fredriksson, Peter & Johansson, Per, 2008. "Dynamic Treatment Assignment," Journal of Business & Economic Statistics, American Statistical Association, American Statistical Association, vol. 26, pages 435-445.
  12. Aldashev, Alisher & Thomsen, Stephan L. & Walter, Thomas, 2010. "Short-term training programs for immigrants: do effects differ from natives and why?," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 10-021, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  13. Jaap H. Abbring & Gerard J. van den Berg, 2003. "The Nonparametric Identification of Treatment Effects in Duration Models," Econometrica, Econometric Society, Econometric Society, vol. 71(5), pages 1491-1517, 09.
  14. Huber, Martin & Lechner, Michael & Walter, Thomas & Wunsch, Conny, 2009. "Do German Welfare-to-Work Programmes Reduce Welfare and Increase Work?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7238, C.E.P.R. Discussion Papers.
  15. repec:iab:iabzaf:v:40:i:1:p:45-64 is not listed on IDEAS
  16. Smith, Jeffrey & Todd, Petra, 2005. "Rejoinder," Journal of Econometrics, Elsevier, Elsevier, vol. 125(1-2), pages 365-375.
  17. Jochen Kluve & Christoph M. Schmidt, 2002. "Can training and employment subsidies combat European unemployment?," Economic Policy, CEPR;CES;MSH, CEPR;CES;MSH, vol. 17(35), pages 409-448, October.
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Citations

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Cited by:
  1. Hohmeyer, Katrin & Wolff, Joachim, 2010. "Direct job creation in Germany revisited: Is it effective for welfare recipients and does it matter whether participants receive a wage?," IAB Discussion Paper 201021, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  2. Heyer, Gerd & Koch, Susanne & Stephan, Gesine & Wolff, Joachim, 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 refo," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 45(1), pages 41-62.
  3. Dengler, Katharina, 2013. "The effectiveness of sequences of One-Euro Jobs : is it better to do more One-Euro-Jobs or to wait?," IAB Discussion Paper 201316, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  4. Gerd Heyer & Susanne Koch & Gesine Stephan & Joachim Wolff, 2012. "Evaluation der aktiven Arbeitsmarktpolitik: Ein Sachstandsbericht für die Instrumentenreform 2011," Journal of Labour Market Research, Springer, Springer, vol. 45(1), pages 41-62, March.
  5. Walter, Thomas & Butschek, Sebastian, 2013. "What Active Labour Market Programmes Work for Immigrants in Europe?," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79745, Verein für Socialpolitik / German Economic Association.
  6. Wolff, Joachim & Hohmeyer, Katrin, 2011. "Direct job creation revisited: Is it effective for welfare recipients and does it matter whether participants receive a wage?," Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48722, Verein für Socialpolitik / German Economic Association.

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