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Who is targeted by One-Euro-Jobs? A Selectivity Analysis

  • Katrin Hohmeyer
  • Eva Kopf
Registered author(s):

Major reforms of the unemployment benefit system were implemented in Germany in 2005. One controversial element of these reforms is the activation of means-tested benefit recipients by a workfare programme, so-called One-Euro-Jobs. Politically and numerically, One-Euro-Jobs are the most important programme for means-tested benefit recipients with more than 600,000 benefit recipients entering the programme per year. Using a sample from early 2005, this study investigates the selection of means-tested unemployment benefit recipients into One-Euro-Jobs in their introduction period. In particular, the different participation chances for men and women as well as for eastern and western Germans are analysed. While women have a lower probability of participating if they have a child under the age of three, there is no such difference to be found for men. We also find that young adults under 25 are more likely to begin a One-Euro-Job than other age groups. Moreover, special target groups such as individuals with a migration background are not promoted with One-Euro-Jobs. In fact, a concentration on defined target groups cannot be observed. To analyse the sizable differences in the participation probabilities of women in eastern and western Germany a Blinder-Oaxaca decomposition of effects is applied. It emerges that the differences can be traced back to a large extent to characteristics such as qualification level and employment history and to the availability of child care facilities.

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File URL: http://dx.doi.org/10.3790/schm.129.4.597
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Article provided by Duncker & Humblot, Berlin in its journal Schmollers Jahrbuch.

Volume (Year): 129 (2009)
Issue (Month): 4 ()
Pages: 597-636

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Handle: RePEc:aeq:aeqsjb:v129_y2009_i1_q1_p597-636
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  1. Caliendo, Marco & Hujer, Reinhard & Thomsen, Stephan L., 2005. "Individual employment effects of job creation schemes in Germany with respect to sectoral heterogeneity," IAB Discussion Paper 200513, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  2. Hohmeyer, Katrin & Wolff, Joachim, 2007. "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].
  3. 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.
  4. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  5. repec:iab:iabzaf:v:40:i:1:p:45-64 is not listed on IDEAS
  6. Caliendo, Marco & Hujer, Reinhard & Thomsen, Stephan L., 2004. "Evaluation der Eingliederungseffekte von Arbeitsbeschaffungsmaßnahmen in reguläre Beschäftigung für Teilnehmer in Deutschland," ZEW Discussion Papers 04-46, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  7. Heckman, James J & Smith, Jeffrey A., 2003. "The determinants of participation in a social program: Evidence from a prototypical job training program," Working Paper Series 2003:10, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  8. 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).
  9. Heinemann, Sarah & Gartner, Hermann & Jozwiak, Eva, 2006. "Arbeitsförderung für Langzeitarbeitslose : erste Befunde zu Eingliederungsleistungen des SGB III im Rechtskreis SGB II," IAB-Forschungsbericht 200603, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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