How do the employment effects of job creation schemes differ with respect to the foregoing unemployment duration?

authored by

Reinhard Hujer, Stephan L. Thomsen

Abstract

Based on new administrative data for Germany covering entrances into job creation schemes between July 2000 and May 2001, we evaluate the effects of this active labour market policy programme considering the timing of treatment in the individual unemployment spell. Applying propensity score matching in a dynamic setting where the time until treatment in the unemployment spell is stratified into quarters, regional (East and West Germany) as well as gender differences are considered in the estimation. The results in terms of employment present a heterogeneous, but disappointing picture. For West Germany, most of the estimates are insignificant at the end of the observation period, and only one positive exception could be established. In East Germany, none of the groups experiences an improvement of the labour market situation, but the employment chances tend to be reduced due to participation even 30 months after start of programmes.

External Organisation(s)

Goethe University Frankfurt
Institute of Labor Economics (IZA)
Otto-von-Guericke University Magdeburg
Centre for European Economic Research (ZEW)

Type

Article

Journal

Labour economics

Volume

17

Pages

38-51

No. of pages

14

ISSN

0927-5371

Publication date

15.07.2009

Publication status

Published

Peer reviewed

Yes

ASJC Scopus subject areas

Economics and Econometrics, Organizational Behavior and Human Resource Management

Sustainable Development Goals

SDG 8 - Decent Work and Economic Growth

Electronic version(s)

https://doi.org/10.1016/j.labeco.2009.07.001 (Access: Closed)
https://ub-madoc.bib.uni-mannheim.de/1371/1/dp06047.pdf (Access: Open)