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How do employment effects of job creation schemes differ with respect to the foregoing unemployment duration?

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  • Hujer, Reinhard
  • Thomsen, Stephan L.

Abstract

Based on new administrative data for Germany covering entrances into job creation schemes between July 2000 and May 2001, we evaluate the effects of this active labour market policy programme on the employability of the participating individuals. The programme effects are estimated considering the timing of treatment in the individual unemployment spell. Applying propensity score matching in a dynamic setting where the time until treatment in the unemployment spell is stratified into quarters, regional (East and West Germany) as well as gender differences are considered in the estimation. As matching is concerned with selection on observables only, we test the robustness of the estimates against possible unobserved influences. The results in terms of employment present a mixed picture. For West Germany, most of the estimates are insignificant at the end of the observation period, but positive exceptions are found for persons starting in the fifth or ninth quarter of the unemployment spell. For East Germany, none of the groups experiences an improvement of the labour market situation. Instead, the majority of the estimates establish negative employment effects until the end of the observation period (30 months after start of programmes). Hence, job creation schemes decrease the employment chances of the participating individuals. --

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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 06-47.

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Date of creation: 2006
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Handle: RePEc:zbw:zewdip:5437

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Keywords: Evaluation; Active Labour Market Policy; Job Creation Schemes; Administrative Data; Propensity Score Matching; Hidden Bias;

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References

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  1. Caliendo, Marco & Hujer, Reinhard & Thomsen, Stephan L., 2005. "Identifying Effect Heterogeneity to Improve the Effiency of Job Creation Schemes in Germany?," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 05-21, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Caliendo, Marco & Hujer, Reinhard & Thomsen, Stephan L., 2005. "The Employment Effects of Job Creation Schemes in Germany: A Microeconometric Evaluation," IZA Discussion Papers 1512, Institute for the Study of Labor (IZA).
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Citations

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Cited by:
  1. Pao-Li Chang & Myoung-Jae Lee, 2007. "The WTO Trade Effect," Working Papers, Singapore Management University, School of Economics 06-2007, Singapore Management University, School of Economics.
  2. Stephan, Gesine & Zickert, Kathi, 2008. "Participation of unemployment benefit recipients in active labor market programs : before and after the German labor market reforms," IAB Discussion Paper 200815, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  3. Hujer, Reinhard & Thomsen, Stephan L., 2006. "Wirksamkeit von Arbeitsbeschaffungsmaßnahmen in Deutschland : empirische Befunde mikroökonometrischer Analysen (Effectiveness of job creation schemes in Germany : empirical findings from microeconom," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 39(3/4), pages 329-345.
  4. Stephan, Gesine, 2008. "The effects of active labor market programs in Germany : an investigation using different definitions of non-treatment," IAB Discussion Paper 200812, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  5. repec:iab:iabzaf:v:39:i:3/4:p:329-345 is not listed on IDEAS
  6. Hujer, Reinhard & Thomsen, Stephan L., 2006. "Wirksamkeit von Arbeitsbeschaffungsmaßnahmen in Deutschland: Empirische Befunde mikroökonometrischer Analysen," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 06-54, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  7. repec:iab:iabzaf:v:39:i:3/4:p:447-465 is not listed on IDEAS
  8. Stephan, Gesine & Rässler, Susanne & Schewe, Torben, 2006. "Das TrEffeR-Projekt der Bundesagentur für Arbeit : die Wirkung von Maßnahmen aktiver Arbeitsmarktpolitik (The TrEffeR project of the Federal Employment Agency : the effect of active labour market po," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 39(3/4), pages 447-465.
  9. Stephan, Gesine & Pahnke, André, 2008. "The Relative Effectiveness of Selected Active Labour Market Programmes and the Common Support Problem," IZA Discussion Papers 3767, Institute for the Study of Labor (IZA).

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