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Do job creation schemes improve the social integration and well-being of the long-term unemployed?

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  • Ivanov, Boris
  • Pfeiffer, Friedhelm
  • Pohlan, Laura

Abstract

In this paper we analyze the effects of a German job creation scheme (JCS) on the social integration and well-being of long-term unemployed individuals. Using linked survey and administrative data for participants and a group of matched non-participants, we find significant positive effects of being employed within this program. They are larger for individuals with health impairments and above-average duration of welfare dependence. The program effects decline over time, which cannot be explained by decreasing levels of well-being and social integration of the participants. Instead, this decrease is driven by a rising share of controls who find a job and catch up to similar outcome levels as program participants. Overall, our results suggest that JCSs can be an efficient labor market policy instrument to improve the quality of life of the long-term unemployed.

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  • Ivanov, Boris & Pfeiffer, Friedhelm & Pohlan, Laura, 2019. "Do job creation schemes improve the social integration and well-being of the long-term unemployed?," ZEW Discussion Papers 19-048, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:19048
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    Cited by:

    1. Ivanov, Boris & Pfeiffer, Friedhelm & Pohlan, Laura, 2020. "Do job creation schemes improve the social integration and well-being of the long-term unemployed?," Labour Economics, Elsevier, vol. 64(C).
    2. Hetschko, Clemens & Knabe, Andreas & Schöb, Ronnie, 2021. "Happiness, Work, and Identity," GLO Discussion Paper Series 783, Global Labor Organization (GLO).
    3. Pohlan, Laura, 2024. "Unemployment's long shadow: the persistent impact on social exclusion," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 58, pages 1-12.
    4. Bastiaans, Mareen & Dur, Robert & Gielen, Anne C., 2024. "Activating the long-term inactive: Labor market and mental health effects," Labour Economics, Elsevier, vol. 90(C).
    5. Alic BÎRCA, 2023. "Workforce Participation in Active Labour Market Policies: A Comparative Analysis in EU Member States," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 24(2), pages 173-187, May.
    6. Xiang Kang & Mingxi Du & Siqin Wang & Haifeng Du, 2022. "Exploring the Effect of Health on Migrants’ Social Integration in China," IJERPH, MDPI, vol. 19(8), pages 1-20, April.
    7. Mörk, Eva & Ottosson, Lillit & Vikman, Ulrika, 2021. "To work or not to work? Effects of temporary public employment on future employment and benefits," Working Paper Series 2021:12, IFAU - Institute for Evaluation of Labour Market and Education Policy.

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    More about this item

    Keywords

    unemployment; active labor market policy; job creation schemes; wellbeing; social integration; matching;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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