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Temporary extra jobs for immigrants: Merging lane to employment or dead-end road in welfare?

  • Thomsen, Stephan L.
  • Walter, Thomas

We evaluate the effects of the most frequently used German welfare-to-work program on the employment chances of immigrant welfare recipients. In particular, we investigate whether program effects differ between immigrants and natives and what might cause these potential differences. Our results reveal that the program fails to achieve its objectives. The effects are more adverse for natives, but the program does not help otherwise identical immigrants to leave the welfare system either. Therefore, the program is a dead-end road rather than a merging lane to regular employment both for natives and for immigrants.

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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 10-027.

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Date of creation: 2010
Date of revision:
Handle: RePEc:zbw:zewdip:10027
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  1. 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.
  2. Aldashev, Alisher & Thomsen, Stephan L. & Walter, Thomas, 2010. "Short-term training programs for immigrants: do effects differ from natives and why?," ZEW Discussion Papers 10-021, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  3. Jaap H. Abbring & Gerard J. van den Berg, 2003. "The Nonparametric Identification of Treatment Effects in Duration Models," Econometrica, Econometric Society, vol. 71(5), pages 1491-1517, 09.
  4. Clausen, Jens & Heinesen, Eskil & Hummelgaard, Hans & Husted, Leif & Rosholm, Michael, 2009. "The effect of integration policies on the time until regular employment of newly arrived immigrants: Evidence from Denmark," Labour Economics, Elsevier, vol. 16(4), pages 409-417, August.
  5. Jochen Kluve & Christoph M. Schmidt, 2002. "Can training and employment subsidies combat European unemployment?," Economic Policy, CEPR;CES;MSH, vol. 17(35), pages 409-448, October.
  6. Hujer, Reinhard & Thomsen, Stephan L., 2010. "How do the employment effects of job creation schemes differ with respect to the foregoing unemployment duration?," Labour Economics, Elsevier, vol. 17(1), pages 38-51, January.
  7. Calmfors, Lars, 1995. "Labour market policy and unemployment," European Economic Review, Elsevier, vol. 39(3-4), pages 583-592, April.
  8. Rebecca M. Blank, 2002. "Evaluating Welfare Reform in the United States," NBER Working Papers 8983, National Bureau of Economic Research, Inc.
  9. Hohmeyer, Katrin, 2009. "Effectiveness of One-Euro-Jobs: Do programme characteristics matter?," IAB Discussion Paper 200920, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  10. Fredriksson, Peter & Johansson, Per, 2008. "Dynamic Treatment Assignment," Journal of Business & Economic Statistics, American Statistical Association, vol. 26, pages 435-445.
  11. Kluve, Jochen, 2010. "The effectiveness of European active labor market programs," Labour Economics, Elsevier, vol. 17(6), pages 904-918, December.
  12. Cohen Goldner, Sarit & Eckstein, Zvi, 2004. "Estimating the Return to Training and Occupational Experience: The Case of Female Immigrants," IZA Discussion Papers 1225, Institute for the Study of Labor (IZA).
  13. Jacobi, Lena & Kluve, Jochen, 2007. "Before and after the Hartz reforms: The performance of active labour market policy in Germany," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(1), pages 45-64.
  14. repec:iab:iabzaf:v:40:i:1:p:45-64 is not listed on IDEAS
  15. Hohmeyer, Katrin & Jozwiak, Eva, 2008. "Who is targeted by One-Euro-Jobs? : a selectivity analysis," IAB Discussion Paper 200808, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  16. Smith, Jeffrey & Todd, Petra, 2005. "Rejoinder," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 365-375.
  17. Martin, John P. & Grubb, David, 2001. "What works and for whom: a review of OECD countries' experiences with active labour market policies," Working Paper Series 2001:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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