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Vouchers and Caseworkers in Public Training Programs: Evidence from the Hartz Reform in Germany

Author

Listed:
  • Rinne, Ulf

    () (IZA)

  • Uhlendorff, Arne

    () (CREST)

  • Zhao, Zhong

    () (Renmin University of China)

Abstract

This paper studies the role of training vouchers and caseworkers in public training programs. Using a rich administrative data set, we apply matching and regression methods to measure the effect of the Hartz reform in Germany, which introduced training vouchers and imposed more selective criteria on participants. Besides estimating the overall reform effect, we isolate the effect induced by changes in the composition of program participants due to stricter selection by the caseworkers (selection effect) from the effect based on the introduction of vouchers (voucher effect). Analyzing the most important type of training in Germany, we find a slightly positive impact of the reform. Our decomposition results suggest that the selection effect is ? if at all ? slightly negative, and that the voucher effect increased both, the employment probability and earnings of the participants.

Suggested Citation

  • Rinne, Ulf & Uhlendorff, Arne & Zhao, Zhong, 2008. "Vouchers and Caseworkers in Public Training Programs: Evidence from the Hartz Reform in Germany," IZA Discussion Papers 3910, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp3910
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    Cited by:

    1. Annabelle Doerr & Bernd Fitzenberger & Thomas Kruppe & Marie Paul & Anthony Strittmatter, 2017. "Employment and Earnings Effects of Awarding Training Vouchers in Germany," ILR Review, Cornell University, ILR School, vol. 70(3), pages 767-812, May.
    2. Caliendo, Marco, 2009. "Income Support Systems, Labor Market Policies and Labor Supply: The German Experience," IZA Discussion Papers 4665, Institute for the Study of Labor (IZA).
    3. Paul, Marie & Dörr, Annabelle & Fitzenberger, Bernd & Kruppe, Thomas & Strittmatter, Anthony, 2013. "The Award of a Training Voucher and Labor Market Outcomes," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79918, Verein für Socialpolitik / German Economic Association.
    4. Doerr, Annabelle, 2017. "Back to work: The long-term effects of vocational training for female job returners," Freiburg Discussion Papers on Constitutional Economics 17/02, Walter Eucken Institut e.V..
    5. Anita Wölfl & Juan S. Mora-Sanguinetti, 2011. "Reforming the Labour Market in Spain," OECD Economics Department Working Papers 845, OECD Publishing.
    6. Doerr, Annabelle, 2017. "Back to work: The Long-term Effects of Vocational Training for Female Job Returners," Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168213, Verein für Socialpolitik / German Economic Association.
    7. Maurizio Bussolo & Johannes Koettl & Emily Sinnott, 2015. "Golden Aging," World Bank Publications, The World Bank, number 22018.
    8. David S. Kaplan & Rafael Novella & Graciana Rucci & Claudia Vazquez, 2015. "Training Vouchers and Labor Market Outcomes in Chile," IDB Publications (Working Papers) 88674, Inter-American Development Bank.
    9. Poeschel, Friedrich, 2014. "Assignment vs. choice: lessons from training vouchers," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100606, Verein für Socialpolitik / German Economic Association.

    More about this item

    Keywords

    Hartz reform; training; active labor market policy; program evaluation; caseworker; matching; voucher;

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

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