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

Author

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  • 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 of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3910
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    Cited by:

    1. Thomas Kruppe & Julia Lang, 2018. "Labour market effects of retraining for the unemployed: the role of occupations," Applied Economics, Taylor & Francis Journals, vol. 50(14), pages 1578-1600, March.
    2. Di Pietro Giorgio, 2025. "Labour market effects of training programmes in the EU. Findings and policy lessons from a meta-analysis," JRC Research Reports JRC142871, Joint Research Centre.
    3. Martin Huber & Michael Lechner & Anthony Strittmatter, 2018. "Direct and indirect effects of training vouchers for the unemployed," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 181(2), pages 441-463, February.
    4. Michael Lechner & Anthony Strittmatter, 2019. "Practical procedures to deal with common support problems in matching estimation," Econometric Reviews, Taylor & Francis Journals, vol. 38(2), pages 193-207, February.
    5. Patrick Arni & Marco Caliendo & Steffen Künn & Klaus Zimmermann, 2014. "The IZA evaluation dataset survey: a scientific use file," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-20, December.
    6. Annabelle Doerr & Thomas Kruppe, 2015. "Training vouchers, local employment agencies, and policy styles [Bildungsgutscheine, regionale Arbeitsagenturen und Politikstile]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 48(1), pages 41-56, March.
    7. Doerr, Annabelle & Strittmatter, Anthony, 2014. "Assignment Mechanisms, Selection Criteria, and the Effectiveness of Training Programs," Economics Working Paper Series 1421, University of St. Gallen, School of Economics and Political Science, revised May 2017.
    8. Doerr Annabelle & Strittmatter Anthony, 2021. "Identifying Causal Channels of Policy Reforms with Multiple Treatments and Different Types of Selection," Journal of Econometric Methods, De Gruyter, vol. 10(1), pages 67-88, January.
    9. Madoń, Karol & Magda, Iga & Palczyńska, Marta & Smoter, Mateusz, . "Co skutecznie wspiera osoby bezrobotne? Aktywne polityki rynku pracy dla osób młodych w Polsce," Gospodarka Narodowa-The Polish Journal of Economics, Szkoła Główna Handlowa w Warszawie / SGH Warsaw School of Economics, vol. 2024(2).
    10. Paul, Marie & Dörr, Annabelle & Fitzenberger, Bernd & Kruppe, Thomas & Strittmatter, Anthony, 2013. "The Award of a Training Voucher and Labor Market Outcomes," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79918, Verein für Socialpolitik / German Economic Association.
    11. 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.
    12. Barbara Hofmann & Michaela Kreyenfeld & Arne Uhlendorff, 2017. "Job Displacement and First Birth Over the Business Cycle," Demography, Springer;Population Association of America (PAA), vol. 54(3), pages 933-959, June.
    13. Karol Madoń & Iga Magda & Marta Palczyńska & Mateusz Smoter, 2024. "What Works for Whom? Youth Labour Market Policy in Poland," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 2, pages 1-34.
    14. Doerr, Annabelle, 2017. "Back to work: The Long-term Effects of Vocational Training for Female Job Returners," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168213, Verein für Socialpolitik / German Economic Association.
    15. Matti Sarvimäki & Kari Hämäläinen, 2016. "Integrating Immigrants: The Impact of Restructuring Active Labor Market Programs," Journal of Labor Economics, University of Chicago Press, vol. 34(2), pages 479-508.
    16. Anthony Strittmatter, 2016. "What effect do vocational training vouchers have on the unemployed?," IZA World of Labor, Institute of Labor Economics (IZA), pages 316-316, November.
    17. Miroslav Stefanik, 2021. "Shifting the Training Choice Decision to the Jobseeker—The Slovak Experience," LABOUR, CEIS, vol. 35(2), pages 192-213, June.
    18. Emily Sinnott & Maurizio Bussolo & Johannes Koettl, 2015. "Golden Aging," World Bank Publications - Books, The World Bank Group, number 22018, April.
    19. 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.
    20. Caliendo, Marco, 2009. "Income Support Systems, Labor Market Policies and Labor Supply: The German Experience," IZA Discussion Papers 4665, Institute of Labor Economics (IZA).
    21. Anita Wölfl & Juan S. Mora-Sanguinetti, 2011. "Reforming the Labour Market in Spain," OECD Economics Department Working Papers 845, OECD Publishing.
    22. 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.
    23. Birca Alic, 2024. "Increasing Sustainable Employment By Involving Organisations In The Vocational Training Of The Unemployed," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 34-44, August.

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    Keywords

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    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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