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Temporary Work as an Active Labor Market Policy: Evaluating an Innovative Program for Disadvantaged Youths

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  • Ehlert, Christoph

    (RWI)

  • Kluve, Jochen

    (KfW Development Bank)

  • Schaffner, Sandra

    (RWI)

Abstract

While high rates of youth unemployment are a severe problem in most European countries, the program evaluation literature shows that disadvantaged youths constitute a group that is particularly difficult to assist effectively. As innovative measures are thus needed, we evaluate a German pilot program that targets low-skilled young unemployed and combines three components: a) individual coaching, b) classroom training and c) temporary work. Using an ex-post quasi-randomization approach, our analysis shows that the program has a positive impact on the post-program employment probability of participants.

Suggested Citation

  • Ehlert, Christoph & Kluve, Jochen & Schaffner, Sandra, 2012. "Temporary Work as an Active Labor Market Policy: Evaluating an Innovative Program for Disadvantaged Youths," IZA Discussion Papers 6670, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp6670
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    References listed on IDEAS

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    1. Michael Kvasnicka, 2009. "Does Temporary Help Work Provide a Stepping Stone to Regular Employment?," NBER Chapters, in: Studies of Labor Market Intermediation, pages 335-372, National Bureau of Economic Research, Inc.
    2. Verhofstadt, Elsy & Goebel, Christian, 2008. "Is Temporary Employment a Stepping Stone for Unemployed School Leavers?," ZEW Discussion Papers 08-093, ZEW - Leibniz Centre for European Economic Research.
    3. David Card & Jochen Kluve & Andrea Weber, 2010. "Active Labour Market Policy Evaluations: A Meta-Analysis," Economic Journal, Royal Economic Society, vol. 120(548), pages 452-477, November.
    4. Dorsett, Richard, 2006. "The new deal for young people: effect on the labour market status of young men," Labour Economics, Elsevier, vol. 13(3), pages 405-422, June.
    5. Michael Kvasnicka, 2005. "Does Temporary Agency Work Provide a Stepping Stone to Regular Employment?," Labor and Demography 0510005, University Library of Munich, Germany.
    6. Jensen, Peter & Rosholm, Michael & Svarer, Michael, 2003. "The response of youth unemployment to benefits, incentives, and sanctions," European Journal of Political Economy, Elsevier, vol. 19(2), pages 301-316, June.
    7. Centeno, Luis & Centeno, Mário & Novo, Álvaro A., 2009. "Evaluating job-search programs for old and young individuals: Heterogeneous impact on unemployment duration," Labour Economics, Elsevier, vol. 16(1), pages 12-25, January.
    8. David H. Autor, 2009. "Studies of Labor Market Intermediation," NBER Books, National Bureau of Economic Research, Inc, number auto07-1.
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    Cited by:

    1. André D. Tsambou & Thierno Malick Diallo & Benjamin Fomba Kamga & Simplice A. Asongu, 2023. "Impact of Employment Support Programs on the Quality of Youth Employment: Evidence from Senegal's Internship Program," Working Papers 23/079, European Xtramile Centre of African Studies (EXCAS).
    2. André Dumas Tsambou & Lionie Mafang & Thierno Malick Diallo & Benjamin Fomba Kamga, 2024. "Impact of job training program on employment outcomes in Senegal," SN Business & Economics, Springer, vol. 4(8), pages 1-33, August.
    3. Alexander Spermann, 2016. "How can temporary work agencies provide more training?," IZA World of Labor, Institute of Labor Economics (IZA), pages 251-251, April.
    4. Maibom, Jonas & Rosholm, Michael & Svarer, Michael, 2014. "Can Active Labour Market Policies Combat Youth Unemployment?," IZA Discussion Papers 7912, Institute of Labor Economics (IZA).
    5. Jochen Kluve & Susana Puerto & David Robalino & Jose Manuel Romero & Friederike Rother & Jonathan Stöterau & Felix Weidenkaff & Marc Witte, 2017. "Interventions to improve the labour market outcomes of youth: A systematic review of training, entrepreneurship promotion, employment services and subsidized employment interventions," Campbell Systematic Reviews, John Wiley & Sons, vol. 13(1), pages 1-288.
    6. Štefánik, Miroslav & Lafférs, Lukáš, 2024. "Supporting the right workplace experience: a dynamic evaluation of three activation programmes for young job seekers in Slovakia," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 58, pages 1-16.
    7. de la Rica, Sara & Gorjón, Lucía, 2017. "Assessing the Impact of a Minimum Income Scheme in the Basque Country," IZA Discussion Papers 10867, Institute of Labor Economics (IZA).
    8. Kluve, Jochen & Puerto, Susana & Robalino, David & Romero, Jose M. & Rother, Friederike & Stöterau, Jonathan & Weidenkaff, Felix & Witte, Marc, 2019. "Do youth employment programs improve labor market outcomes? A quantitative review," World Development, Elsevier, vol. 114(C), pages 237-253.
    9. Rune V. Lesner & Anna Piil Damm & Preben Bertelsen & Mads Uffe Pedersen, 2018. "Life Skills Development of Teenagers through Spare-Time Jobs," Economics Working Papers 2018-09, Department of Economics and Business Economics, Aarhus University.

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    More about this item

    Keywords

    program evaluation; disadvantaged youths; temporary work; ALMP;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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