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

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  • Katrin Hohmeyer
  • Eva Kopf

Abstract

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.

Suggested Citation

  • 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, vol. 129(4), pages 597-636.
  • Handle: RePEc:aeq:aeqsjb:v129_y2009_i1_q1_p597-636
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    File URL: http://dx.doi.org/10.3790/schm.129.4.597
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    Cited by:

    1. Dengler, Katharina, 2013. "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].
    2. Wolff, Joachim & Moczall, Andreas, 2012. "Übergänge von Alg-II-Beziehern in die erste Sanktion : Frauen werden nur selten sanktioniert," IAB-Forschungsbericht 201211, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Caliendo, Marco, 2009. "Income support systems, labor market policies and labor supply: the German experience," Working Paper Series 2009:26, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    4. Krug, Gerhard & Dietz, Martin & Ullrich, Britta, 2008. "The impact of firm characteristics on the success of employment subsidies : a decomposition analysis of treatment effects," IAB Discussion Paper 200818, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Zabel, Cordula, 2011. "Lone mothers' participation in labor market programs for means-tested benefit recipients in Germany," IAB Discussion Paper 201114, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Yankova, Katerina, 2010. "Der Selektionsprozess in Maßnahmen der aktiven Arbeitsmarktpolitik : eine explorative Untersuchung für die deutsche Arbeitsvermittlung (The selection process in active labour market policy measures : ," IAB Discussion Paper 201011, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. Sarah Bernhard & Thomas Kruppe, 2012. "Effectiveness of Further Vocational Training in Germany – Empirical Findings for Persons Receiving Means-tested Unemployment Benefits," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 132(4), pages 501-526.
    8. Stephan L. Thomsen & Thomas Walter, 2010. "Temporary Extra Jobs for Immigrants: Merging Lane to Employment or Dead‐End Road in Welfare?," LABOUR, CEIS, vol. 24(s1), pages 114-140, December.
    9. Beyersdorf, Joanna & Rauch, Angela, 2012. "Junge Rehabilitanden zwischen Schule und Erwerbsleben : Maßnahmen der beruflichen Ersteingliederung anhand empirischer Befunde aus der IAB-Panelbefragung der Rehabilitanden 2007 und 2008," IAB-Forschungsbericht 201214, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    10. Hohmeyer, Katrin & Wolff, Joachim, 2016. "Of carrots and sticks: The effect of workfare announcements on the job search behaviour and reservation wage of welfare recipients," Annual Conference 2016 (Augsburg): Demographic Change 145523, Verein für Socialpolitik / German Economic Association.
    11. Hohmeyer, Katrin & Wolff, Joachim, 2015. "Selektivität von Ein-Euro-Job-Ankündigungen," IAB-Forschungsbericht 201502, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    12. Katrin Hohmeyer, 2011. "Effectiveness of One-Euro-Jobs: Do programme characteristics matter?," Post-Print hal-00719485, HAL.

    More about this item

    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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