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Oekonometrie vs. Projektdesign: Lehren aus der Evaluation eines Modellprojekts zur Umsetzung des Workfare-Konzepts

  • Hilmar Schneider

    ()

    (IZA Bonn)

  • Arne Uhlendorff

    ()

    (Universität Mannheim)

  • Klaus F. Zimmermann

    ()

    (IZA Bonn)

A common problem of welfare states consists of a high unemployment risk for low-skilled workers. This is often attributed to a lack of jobs for the low-skilled, but it may as well be caused by a lack of incentives to work. Low-skilled workers are easily substitutable and therefore have little bargaining power. Hence, they are typically dependent on low-paid jobs. This may create disincentives towork, if the achievable marketwage does not sufficiently exceed the welfare level. Workfare could be an efficient strategy to overcome such disincentives by introducing a work requirement for unemployed welfare recipients. In our paper we investigate the importance of such a supply side policy. We evaluate a pilot workfare project of a Berlin city community to integrate young people in social assistance into the labor market. Reference data are generated in collaboration with the German Employment Office. The participation effect is found to be positive and of relevant size, but not statistically significant. This indicates that selection biases detected in the allocation process of individuals to the program can be adjusted by econometric techniques, but only at the prize of reduced significance levels. Given the small sample sizes of pilot projects this calls for social experiments in controlled project designs.

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Article provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.

Volume (Year): 233 (2013)
Issue (Month): 1 (January)
Pages: 65-85

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Handle: RePEc:jns:jbstat:v:233:y:2013:i:1:p:65-85
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  11. Hilmar Schneider, 2008. "Die Veränderung der Lohnersatzleistungen und die Reform der Vermittlungsprozesse im SGB III," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 77(1), pages 20-37.
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  15. Hilmar Schneider & Arne Uhlendorff, 2005. "Transitions from Welfare to Employment: Does the Ratio between Labor Income and Social Assistance Matter?," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 125(1), pages 51-61.
  16. Rebecca M. Blank, 2002. "Evaluating Welfare Reform in the United States," NBER Working Papers 8983, National Bureau of Economic Research, Inc.
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  19. Bonin, Holger & Kempe, Wolfram & Schneider, Hilmar, 2002. "Kombilohn oder Workfare? Zur Wirksamkeit zweier arbeitsmarktpolitischer Strategien," IZA Discussion Papers 587, Institute for the Study of Labor (IZA).
  20. Schneider, Hilmar & Uhlendorff, Arne & Zimmermann, Klaus F., 2010. "Mit Workfare aus der Sozialhilfe? Lehren aus einem Modellprojekt," IZA Standpunkte 33, Institute for the Study of Labor (IZA).
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