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Sectoral Heterogeneity in the Employment Effects of Job Creation Schemes in Germany

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  • Caliendo Marco

    () (Senior Research Associate at the German Institute for Economic Research (DIW) in Berlin, Germany)

  • Hujer Reinhard

    () (Professor of Statistics and Econometrics at the J.W.Goethe-University of Frankfurt/Main, Germany)

  • Thomsen Stephan L.

    () (Research Assistant at the Institute of Statistics and Econometrics, J.W.Goethe-University of Frankfurt/Main, Germany)

Abstract

Job creation schemes (JCS) have been one important programme of active labour market policy (ALMP) in Germany for a long time. They aim at the re-integration of hard-to-place unemployed individuals into regular employment. A thorough microeconometric evaluation of these programmes was hindered by the fact, that available survey datasets have been too small to account for a possible occurrence of effect heterogeneity. However, identifying effect heterogeneity can help to improve the design and implementation of future programmes. Hence, we use administrative data of the Federal Employment Agency, containing over 11,000 participants to analyse the employment effects of JCS on an individual level. We focus explicitly on effect heterogeneity caused by differences in the implementation of programmes, whereas we analysed these effects with respect to group-specific and regional heterogeneity in a previous paper. At first, we evaluate the effects with respect to the economic sector in which the JCS are accomplished. Second, we analyse if different types of support lead to different effects. Finally, we examine if there are varying effects which can be attributed to different implementing institutions. The results are rather discouraging and show that JCS are in general not able to improve the re-integration chances of participants into regular employment.

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  • Caliendo Marco & Hujer Reinhard & Thomsen Stephan L., 2006. "Sectoral Heterogeneity in the Employment Effects of Job Creation Schemes in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 226(2), pages 139-179, April.
    • Handle: RePEc:jns:jbstat:v:226:y:2006:i:2:p:139-179
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    Cited by:

    1. Brück-Klingberg, Andrea & Burkert, Carola & Garloff, Alfred & Seibert, Holger & Wapler, Rüdiger, 2011. "Does higher education help immigrants find a job? : A survival analysis," IAB Discussion Paper 201106, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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    11. Tobias Brändle & Lukas Fervers, 2017. "Give it Another Try: What are the Effects of a Public Employment Scheme Especially Designed for Hard-to-Place Workers?," IAW Discussion Papers 129, Institut für Angewandte Wirtschaftsforschung (IAW).
    12. Stephan Gesine, 2008. "The Effects of Active Labor Market Programs in Germany: An Investigation Using Different Definitions of Non-Treatment," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 228(5-6), pages 586-611, October.
    13. 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].
    14. Huber, Martin & Lechner, Michael & Wunsch, Conny, 2013. "The performance of estimators based on the propensity score," Journal of Econometrics, Elsevier, vol. 175(1), pages 1-21.
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    16. 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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    18. 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 microeconomet," 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.
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    20. Brändle, Tobias & Fervers, Lukas, 2018. "Give it Another Try: What are the Effects of a Job Creation Scheme Especially Designed for Hard-to-Place Workers?," Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181536, Verein für Socialpolitik / German Economic Association.
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    23. Rainer Eppel & Helmut Mahringer & Petra Sauer, 2017. "Österreich 2025 – Arbeitslosigkeit und die Rolle der aktiven Arbeitsmarktpolitik," WIFO Monatsberichte (monthly reports), WIFO, vol. 90(6), pages 493-505, June.
    24. Hujer, Reinhard & Zeiss, Christopher, 2007. "The effects of job creation schemes on the unemployment duration in Eastern Germany," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(4), pages 383-398.

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