IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp3404.html
   My bibliography  Save this paper

Individual Incentives in Program Participation: Splitting up the Process in Assignment and Enrollment

Author

Listed:
  • Weber, Andrea

    (Central European University)

Abstract

In this paper we investigate two stages in the process that leads to participation in ALMP programs. We use unique administrative data from the Austrian unemployment registers which allow us to distinguish between caseworker assignment and actual program enrollment. Although 25% of newly unemployed workers are assigned to a program, only half of them enroll and participate in the program longer than 5 days. This difference between assignment and enrollment rates cannot be explained by job entries, program cancelations, or rejected program applications alone. Therefore we analyze the influence of observable characteristics on each stage of the participation process. We find that beside policy regulations individual worker incentives play an important role in determining program participation.

Suggested Citation

  • Weber, Andrea, 2008. "Individual Incentives in Program Participation: Splitting up the Process in Assignment and Enrollment," IZA Discussion Papers 3404, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3404
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp3404.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Staghøj, Jonas & Svarer, Michael & Rosholm, Michael, 2007. "A Statistical Programme Assignment Model," IZA Discussion Papers 3165, Institute of Labor Economics (IZA).
    2. Stefanie Behncke & Markus Frölich & Michael Lechner, 2009. "Targeting Labour Market Programmes - Results from a Randomized Experiment," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 145(III), pages 221-268, September.
    3. James J. Heckman & Jeffrey A. Smith, 2004. "The Determinants of Participation in a Social Program: Evidence from a Prototypical Job Training Program," Journal of Labor Economics, University of Chicago Press, vol. 22(2), pages 243-298, April.
    4. Lechner, Michael & Smith, Jeffrey, 2007. "What is the value added by caseworkers?," Labour Economics, Elsevier, vol. 14(2), pages 135-151, April.
    5. Currie, Janet, 2004. "The Take-Up of Social Benefits," IZA Discussion Papers 1103, Institute of Labor Economics (IZA).
    6. Heckman, James J & Smith, Jeffrey A, 1999. "The Pre-programme Earnings Dip and the Determinants of Participation in a Social Programme. Implications for Simple Programme Evaluation Strategies," Economic Journal, Royal Economic Society, vol. 109(457), pages 313-348, July.
    7. Rajeev H. Dehejia & Sadek Wahba, 1998. "Causal Effects in Non-Experimental Studies: Re-Evaluating the Evaluation of Training Programs," NBER Working Papers 6586, National Bureau of Economic Research, Inc.
    8. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097, Elsevier.
    9. Dehejia, Rajeev H., 2005. "Program evaluation as a decision problem," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 141-173.
    10. Helmut Hofer & Andrea Weber, 2006. "Active Labor Market Policy in Austria: Practice and Evaluation Results," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 75(3), pages 155-167.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jekaterina Dmitrijeva & Florent Fremigacci & Yannick L’Horty, 2015. "Le paradoxe des nouvelles politiques d’insertion," Revue d'économie politique, Dalloz, vol. 125(4), pages 475-498.
    2. Hohmeyer, Katrin & Wolff, Joachim, 2015. "Selektivität von Ein-Euro-Job-Ankündigungen," IAB-Forschungsbericht 201502, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Yankova, Katerina, 2010. "Der Selektionsprozess in Maßnahmen der aktiven Arbeitsmarktpolitik : eine explorative Untersuchung für die deutsche Arbeitsvermittlung (The selection process in active labour market policy measures : ," IAB-Discussion Paper 201011, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Pierre Koning & C.J. Heinrich, 2009. "Cream-skimming, parking and other intended and unintended effects of performance-based contracting in social welfare services," CPB Discussion Paper 134, CPB Netherlands Bureau for Economic Policy Analysis.
    5. Poeschel, Friedrich, 2014. "Assignment vs. choice: lessons from training vouchers," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100606, Verein für Socialpolitik / German Economic Association.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bas van der Klaauw & Sandra Vriend, 2015. "A Nonparametric Method for Predicting Survival Probabilities," Tinbergen Institute Discussion Papers 15-126/V, Tinbergen Institute.
    2. Kluve, Jochen & Lehmann, Hartmut & Schmidt, Christoph M., 2008. "Disentangling Treatment Effects of Active Labor Market Policies: The Role of Labor Force Status Sequences," Labour Economics, Elsevier, vol. 15(6), pages 1270-1295, December.
    3. Bhattacharya, Debopam & Dupas, Pascaline, 2012. "Inferring welfare maximizing treatment assignment under budget constraints," Journal of Econometrics, Elsevier, vol. 167(1), pages 168-196.
    4. Lechner Michael & Miquel Ruth & Wunsch Conny, 2007. "The Curse and Blessing of Training the Unemployed in a Changing Economy: The Case of East Germany After Unification," German Economic Review, De Gruyter, vol. 8(4), pages 468-509, December.
    5. Jonathan M.V. Davis & Sara B. Heller, 2017. "Rethinking the Benefits of Youth Employment Programs: The Heterogeneous Effects of Summer Jobs," NBER Working Papers 23443, National Bureau of Economic Research, Inc.
    6. Bolhaar, Jonneke & Ketel, Nadine & van der Klaauw, Bas, 2020. "Caseworker's discretion and the effectiveness of welfare-to-work programs," Journal of Public Economics, Elsevier, vol. 183(C).
    7. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    8. Peter R. Mueser & Kenneth R. Troske & Alexey Gorislavsky, 2007. "Using State Administrative Data to Measure Program Performance," The Review of Economics and Statistics, MIT Press, vol. 89(4), pages 761-783, November.
    9. Stefanie Behncke & Markus Frölich & Michael Lechner, 2009. "Targeting Labour Market Programmes - Results from a Randomized Experiment," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 145(III), pages 221-268, September.
    10. Hartmut Lehmann & Jochen Kluve, 2010. "Assessing Active Labour Market Policies in Transition Economies," AIEL Series in Labour Economics, in: Floro Ernesto Caroleo & Francesco Pastore (ed.), The Labour Market Impact of the EU Enlargement, pages 275-307, Springer.
    11. Lechner, Michael & Smith, Jeffrey, 2007. "What is the value added by caseworkers?," Labour Economics, Elsevier, vol. 14(2), pages 135-151, April.
    12. Malo, Miguel A., 2005. "Job matching quality effects of employment promotion measures for people with disabilities," DEE - Working Papers. Business Economics. WB wb055315, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    13. Gockel, Ryan P. & Cullen, Alison C., 2013. "Willing, but Unable: Determinants of Participation Rates for TrainingWorkshops in Central Vietnam," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 3(10), pages 1-15, October.
    14. Burt S. Barnow & Jeffrey Smith, 2015. "Employment and Training Programs," NBER Chapters, in: Economics of Means-Tested Transfer Programs in the United States, Volume 2, pages 127-234, National Bureau of Economic Research, Inc.
    15. Oscar Mitnik, 2008. "How do Training Programs Assign Participants to Training? Characterizing the Assignment Rules of Government Agencies for Welfare-to-Work Programs in California," Working Papers 0907, University of Miami, Department of Economics.
    16. Sianesi, Barbara, 2017. "Evidence of randomisation bias in a large-scale social experiment: The case of ERA," Journal of Econometrics, Elsevier, vol. 198(1), pages 41-64.
    17. Conny Wunsch, 2007. "Optimal Use of Labour Market Policies," University of St. Gallen Department of Economics working paper series 2007 2007-26, Department of Economics, University of St. Gallen.
    18. Andrea Pufahl & Christoph R. Weiss, 2009. "Evaluating the effects of farm programmes: results from propensity score matching," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(1), pages 79-101, March.
    19. Michael Lechner & Ruth Miquel & Conny Wunsch, 2011. "Long‐Run Effects Of Public Sector Sponsored Training In West Germany," Journal of the European Economic Association, European Economic Association, vol. 9(4), pages 742-784, August.
    20. Hämäläinen, Kari & Ollikainen, Virve, 2004. "Differential Effects of Active Labour Market Programmes in the Early Stages of Young People's Unemployment," Research Reports 115, VATT Institute for Economic Research.

    More about this item

    Keywords

    unemployment; active labor market policy; evaluation;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp3404. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.