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Short-term training programs for immigrants in the German welfare system: do effects differ from natives and why?

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  • Stephan Thomsen
  • Thomas Walter
  • Alisher Aldashev

Abstract

We evaluate the individual employment effects of four types of short-term training for immigrants and natives in the German welfare system and identify differences in the effects determined by unobservable factors. Based on comprehensive and unique administrative data, we apply propensity score matching in a dynamic setting to estimate the treatment effects and suggest the identification of unexplained effect differences between groups. The results show a mixed picture: two types of training increase the employment chances of immigrants, whereas the other two are rather ineffective. Effect differences between immigrants and natives predominantly result from socio-demographic composition. JEL codes: I38, C14, J61 Copyright Thomsen et al.; licensee Springer. 2013

Suggested Citation

  • Stephan Thomsen & Thomas Walter & Alisher Aldashev, 2013. "Short-term training programs for immigrants in the German welfare system: do effects differ from natives and why?," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-20, December.
    • Handle: RePEc:spr:izamig:v:2:y:2013:i:1:p:1-20:10.1186/2193-9039-2-24
    DOI: 10.1186/2193-9039-2-24
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    12. Cohen-Goldner, Sarit & Eckstein, Zvi, 2010. "Estimating the return to training and occupational experience: The case of female immigrants," Journal of Econometrics, Elsevier, vol. 156(1), pages 86-105, May.
    13. Wolff, Joachim & Jozwiak, Eva, 2007. "Does short-term training activate means-tested unemployment benefit recipients in Germany?," IAB-Discussion Paper 200729, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    14. Walter, Thomas & Butschek, Sebastian, 2013. "What Active Labour Market Programmes Work for Immigrants in Europe?," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79745, Verein für Socialpolitik / German Economic Association.
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    Cited by:

    1. Kai Ingwersen & Stephan L. Thomsen, 2021. "The immigrant-native wage gap in Germany revisited," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(4), pages 825-854, December.
    2. Katharina Dengler, 2019. "Effectiveness of sequences of classroom training for welfare recipients: what works best in West Germany?," Applied Economics, Taylor & Francis Journals, vol. 51(1), pages 1-46, January.
    3. Bonin, Holger & Rinne, Ulf, 2017. "Machbarkeitsstudie zur Durchführung einer Evaluation der arbeitsmarktpolitischen Integrationsmaßnahmen für Flüchtlinge," IZA Research Reports 76, Institute of Labor Economics (IZA).
    4. Selda Dudu, 2022. "Employability and Labor Income of Immigrants in the US: A Special Focus on the Roles of Language and Home Country Income Level," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 8(1), pages 15-34, June.

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    More about this item

    Keywords

    Immigrants; Welfare; Short-term training; Evaluation; Immigrant fixed effect;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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