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A fistful of Euros: Does One-Euro-Job participation lead means-tested benefit recipients into regular jobs and out of unemployment benefit II receipt?

Author

Listed:
  • Hohmeyer, Katrin

    () (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

  • Wolff, Joachim

    () (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])

Abstract

"In 2005 a major reform of the German means-tested unemployment benefit system came into force. The reform aimed at activating benefit recipients, e.g., by a workfare programme, the so-called One-Euro-Job. This programme was implemented at a large scale. Participants receive their means-tested benefit and a small compensation of usually one to 1.5 EURO per hour worked. Participation typically lasts six months or less. We investigate the impact of One-Euro-Jobs for participants who entered the programme at the start of the year 2005. We apply propensity score matching to estimate the treatment effects on the outcomes regular employment, neither being registered as unemployed nor as job-seeker and no unemployment benefit II receipt. We observe these outcomes for about two years after programme start. The locking-in effects are small. Moreover, 20 months after programme there is a significant but small positive impact on the employment rate of female but not male participants. During the first two years after programme start, participation does not contribute to avoiding unemployment benefit II receipt. Our results imply that there is some effect heterogeneity: Participation reduces the employment rate of participants younger than 25 years, but raises it for some older participant groups. It is ineffective for participants who were recently employed, while it is effective for participants who lost their last contributory job between 1992 and 2000." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Hohmeyer, Katrin & Wolff, Joachim, 2007. "A fistful of Euros: Does One-Euro-Job participation lead means-tested benefit recipients into regular jobs and out of unemployment benefit II receipt?," IAB Discussion Paper 200732, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  • Handle: RePEc:iab:iabdpa:200732
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Marco Caliendo & Jens Hogenacker, 2012. "The German labor market after the Great Recession: successful reforms and future challenges," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-24, December.
    2. Heyer, Gerd & Koch, Susanne & Stephan, Gesine & Wolff, Joachim, 2011. "Evaluation der aktiven Arbeitsmarktpolitik: Ein Sachstandsbericht für die Instrumentenreform 2011 (Evaluation of active labor market programs : a summary of recent results for the German program refor," IAB Discussion Paper 201117, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Robert Jäckle & Marianne Müller & Martin Werding, 2008. "Die Wiesbadener »Alltags-Engel« Zeitarbeit in haushaltsnahen Dienstleistungen als arbeitsmarktpolitisches Instrument im SGB II," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 61(21), pages 16-25, November.
    4. Immervoll, Herwig, 2009. "Minimum-Income Benefits in OECD Countries: Policy Design, Effectiveness and Challenges," IZA Discussion Papers 4627, Institute for the Study of Labor (IZA).
    5. Wolff, Joachim & Nivorozhkin, Anton, 2008. "Start me up: The effectiveness of a self-employment programme for needy unemployed people in Germany," IAB Discussion Paper 200820, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Huber, Martin & Lechner, Michael & Walter, Thomas & Wunsch, Conny, 2009. "Do German Welfare-to-Work Programmes Reduce Welfare and Increase Work?," CEPR Discussion Papers 7238, C.E.P.R. Discussion Papers.
    7. Marco Caliendo & Ricarda Schmidl, 2016. "Youth unemployment and active labor market policies in Europe," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-30, December.
    8. 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.
    9. 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.
    10. 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.

    More about this item

    Keywords

    Arbeitsgelegenheit - Erfolgskontrolle; Teilnehmerstruktur; berufliche Reintegration; Wirkungsforschung; Altersstruktur; Geschlechterverteilung; Qualifikationsstruktur; Arbeitslosengeld II-Empfänger; Nationalität; Arbeitsförderung; Arbeitsmarktchancen; Ostdeutschland; Westdeutschland; Bundesrepublik Deutschland;

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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