Identifying effect heterogeneity to improve the efficiency of job creation schemes in Germany

authored by
Marco Caliendo, Reinhard Hujer, Stephan L. Thomsen
Abstract

Previous empirical studies of job creation schemes (JCS) in Germany have shown that the average effects for the participating individuals are negative. However, we find that this is not true for all strata of the population. Identifying individual characteristics that are responsible for the effect heterogeneity and using this information for a better allocation of individuals therefore bears some scope for improving programme efficiency. We present several stratification strategies and discuss the occurring effect heterogeneity. Our findings show that JCS do neither harm nor improve the labour market chances for most of the groups. Exceptions are long-term unemployed men in West and long-term unemployed women in East and West Germany who benefit from participation in terms of higher employment rates.

External Organisation(s)
Institute of Labor Economics (IZA)
Goethe University Frankfurt
Otto-von-Guericke University Magdeburg
Centre for European Economic Research (ZEW)
Type
Article
Journal
Applied economics
Volume
40
Pages
1101-1122
No. of pages
22
ISSN
0003-6846
Publication date
11.04.2011
Publication status
Published
Peer reviewed
Yes
ASJC Scopus subject areas
Economics and Econometrics
Sustainable Development Goals
SDG 8 - Decent Work and Economic Growth
Electronic version(s)
https://doi.org/10.1080/00036840500438897 (Access: Closed)
https://www.ssoar.info/ssoar/bitstream/document/23928/1/ssoar-appecon-2008-09-caliendo_et_al-identifying_effect_heterogeneity_to_improve.pdf (Access: Open)