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Effectiveness of One-Euro-Jobs: do programme characteristics matter?

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  • K. Hohmeyer

Abstract

Recent German labour market reforms introduced a large scale workfare programme called One-Euro-Jobs to activate welfare recipients and improve their employment prospects. In programme design leeway is left to regional actors. Using administrative data and Propensity Score (PS) matching, this article investigates the association between programme design and effectiveness, so as to provide insight on how to increase programme effectiveness. First, effects of different types of One-Euro-Jobs according to planned duration and weekly working hours compared to 'waiting' are estimated. Second, programme types are compared directly to disentangle selection and programme effects. As expected lock-in effects are larger for participations with a longer planned duration, but not for those with longer weekly working hours. One-Euro-Jobs do not generally increase the employment prospects for East German men beyond 2 years after programme start and longer and more intensive participations even decrease employment prospects. In West Germany, One-Euro-Jobs generally increase the employment chances and longer participations lead to slightly greater employment opportunities roughly 2 years after programme start. The initial advantages of short participations decrease over time. Following these results, a reallocation of participants might improve programme effectiveness.

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  • K. Hohmeyer, 2012. "Effectiveness of One-Euro-Jobs: do programme characteristics matter?," Applied Economics, Taylor & Francis Journals, vol. 44(34), pages 4469-4484, December.
    • Handle: RePEc:taf:applec:v:44:y:2012:i:34:p:4469-4484
    DOI: 10.1080/00036846.2011.591734
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    References listed on IDEAS

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    1. Gesine Stephan & André Pahnke, 2011. "The Relative Effectiveness Of Selected Active Labor Market Programs: An Empirical Investigation For Germany," Manchester School, University of Manchester, vol. 79(6), pages 1262-1293, December.
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    1. 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," VfS Annual Conference 2016 (Augsburg): Demographic Change 145523, Verein für Socialpolitik / German Economic Association.
    2. Goller, Daniel & Harrer, Tamara & Lechner, Michael & Wolff, Joachim, 2021. "Active labour market policies for the long-term unemployed: New evidence from causal machine learning," Economics Working Paper Series 2108, University of St. Gallen, School of Economics and Political Science.
    3. 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].
    4. Tobias Brändle & Lukas Fervers, 2021. "Give it Another Try: What are the Effects of a Job Creation Scheme Especially Designed for Hard-to-Place Workers?," Journal of Labor Research, Springer, vol. 42(3), pages 382-417, December.
    5. Wapler, Rüdiger & Wolf, Katja & Wolff, Joachim, 2018. "Do active labour market policies for welfare recipients in Germany raise their regional outflow into work? : A matching function approach," IAB-Discussion Paper 201808, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Kopf, Eva & Zabel, Cordula, 2014. "Active labour market programmes for women with a partner : challenge or replication of traditional gender roles," IAB-Discussion Paper 201406, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. Wapler, Rüdiger & Wolf, Katja & Wolff, Joachim, 2022. "Do active labor market policies for welfare recipients in Germany raise their regional outflow into work?," Journal of Policy Modeling, Elsevier, vol. 44(3), pages 550-563.
    8. 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.
    9. Zabel, Cordula, 2013. "Effects of participating in skill training and workfare on employment entries for lone mothers receiving means-tested benefits in Germany," IAB-Discussion Paper 201303, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    10. Katrin Hohmeyer & Joachim Wolff, 2018. "Of carrots and sticks: the effect of workfare announcements on the job search behaviour and reservation wage of welfare recipients," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 52(1), pages 1-23, December.
    11. Joachim Wolff & Gesine Stephan, 2013. "Subsidized work before and after the German Hartz reforms: design of major schemes, evaluation results and lessons learnt," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-24, December.

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