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The Effects of Active Labor Market Programs in Germany: An Investigation Using Different Definitions of Non-Treatment

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  • Stephan Gesine

    (Institute for Employment Research, Regensburger Str. 104, 90478 Nuremberg, Germany)

Abstract

This paper estimates the effects of several German labor market programs - starting in March 2003 - on the employment outcomes of participants using propensity score matching. The main objective is to analyze how estimated average treatment effects vary with the choice of the classification window that defines treatment and non-treatment. The first approach does not put any restrictions on the future of the treated as well as of their comparison group. This approach has become more and more common in the evaluation of European labor market policies. In contrast, the second approach considers only potential comparison group members, who have not entered any labor market program during the entire observation period of 3V2 years. The third approach additionally restricts itself to participants, who have not participated in further labor market programs during the observation period. The results differ considerably; program effectiveness is estimated to be much lower using the second approach. The paper highlights the fact that program careers are a non-trivial issue that deserves more attention in future research.

Suggested Citation

  • Stephan Gesine, 2008. "The Effects of Active Labor Market Programs in Germany: An Investigation Using Different Definitions of Non-Treatment," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 228(5-6), pages 586-611, October.
    • Handle: RePEc:jns:jbstat:v:228:y:2008:i:5-6:p:586-611
    DOI: 10.1515/jbnst-2008-5-611
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    Cited by:

    1. Heyer, Gerd & Koch, Susanne & Stephan, Gesine & Wolff, Joachim, 2012. "Evaluation der aktiven Arbeitsmarktpolitik: Ein Sachstandsbericht für die Instrumentenreform 2011 (Evaluation of active labor market programs : a summary of recent results for the German program refor," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 45(1), pages 41-62.
    2. Thomas Kruppe & Julia Lang, 2018. "Labour market effects of retraining for the unemployed: the role of occupations," Applied Economics, Taylor & Francis Journals, vol. 50(14), pages 1578-1600, March.
    3. Caliendo, Marco & Künn, Steffen, 2011. "Start-up subsidies for the unemployed: Long-term evidence and effect heterogeneity," Journal of Public Economics, Elsevier, vol. 95(3), pages 311-331.
    4. Katharina Dengler, 2019. "Effectiveness of sequences of classroom training for welfare recipients: what works best in West Germany?," Applied Economics, Taylor & Francis Journals, vol. 51(1), pages 1-46, January.
    5. Ulf Rinne & Arne Uhlendorff & Zhong Zhao, 2013. "Vouchers and caseworkers in training programs for the unemployed," Empirical Economics, Springer, vol. 45(3), pages 1089-1127, December.
    6. Begoña Cueto & Luis Toharia & Carlos García Serrano & Joan A. Alujas, 2010. "Los efectos de la formación ocupacional: ¿Importa la duración de las acciones?," Hacienda Pública Española / Review of Public Economics, IEF, vol. 195(4), pages 9-36, december.
    7. Draheim, Matthias & Schanbacher, Peter & Seiberlich, Ruben, 2021. "On the effectiveness of case management for people with disabilities," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 55, pages 1-15.
    8. Bernhard, Sarah & Gartner, Hermann & Stephan, Gesine, 2008. "Wage subsidies for needy job-seekers and their effect on individual labour market outcomes after the German reforms," IAB-Discussion Paper 200821, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    9. Sabine Klinger & Thomas Rothe, 2012. "The Impact of Labour Market Reforms and Economic Performance on the Matching of the Short‐term and the Long‐term Unemployed," Scottish Journal of Political Economy, Scottish Economic Society, vol. 59(1), pages 90-114, February.
    10. Alda, Holger, 2013. "Tätigkeitsschwerpunkte und ihre Auswirkungen auf Erwerbstätige: eine empirische Anwendung des Tätigkeitsansatzes für die Beschreibung von Arbeitsplätzen in Deutschland und die Abschätzung sozioökonomi," Wissenschaftliche Diskussionspapiere, Federal Institute for Vocational Education and Training (BIBB), Bonn, volume 127, number 138, March.
    11. Hofmann Barbara, 2012. "Short- and Long-term Ex-Post Effects of Unemployment Insurance Sanctions: Evidence from West Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(1), pages 31-60, February.
    12. Caliendo, Marco & Künn, Steffen & Wießner, Frank, 2012. "Der Gründungszuschuss in Brandenburg: Eine regionale Analyse," IZA Research Reports 48, Institute of Labor Economics (IZA).
    13. Gerd Heyer & Susanne Koch & Gesine Stephan & Joachim Wolff, 2012. "Evaluation der aktiven Arbeitsmarktpolitik: Ein Sachstandsbericht für die Instrumentenreform 2011," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 45(1), pages 41-62, March.
    14. Sarah Bernhard & Thomas Kruppe, 2012. "Effectiveness of Further Vocational Training in Germany – Empirical Findings for Persons Receiving Means-tested Unemployment Benefits," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 132(4), pages 501-526.
    15. Boockmann Bernhard & Brändle Tobias, 2019. "Coaching, Counseling, Case-Working: Do They Help the Older Unemployed Out of Benefit Receipt and Back Into the Labor Market?," German Economic Review, De Gruyter, vol. 20(4), pages 436-468, December.
    16. Katrin Hohmeyer, 2011. "Effectiveness of One-Euro-Jobs: Do programme characteristics matter?," Post-Print hal-00719485, HAL.
    17. Bernhard, Sarah & Hohmeyer, Katrin & Jozwiak, Eva & Koch, Susanne & Kruppe, Thomas & Stephan, Gesine & Wolff, Joachim, 2008. "Aktive Arbeitsmarktpolitik in Deutschland und ihre Wirkungen," IAB-Forschungsbericht 200802, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    18. Kruppe, Thomas & Scholz, Theresa, 2014. "Labour hoarding in Germany : employment effects of short-time work during the crises," IAB-Discussion Paper 201417, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    19. Stephan, Gesine & Pahnke, André, 2008. "The Relative Effectiveness of Selected Active Labour Market Programmes and the Common Support Problem," IZA Discussion Papers 3767, Institute of Labor Economics (IZA).
    20. Torsten Lietzmann & Paul Schmelzer & Jürgen Wiemers, 2017. "Marginal employment for welfare recipients: stepping stone or obstacle?," LABOUR, CEIS, vol. 31(4), pages 394-414, December.
    21. Reinhard Hujer, 2011. "Mikroökonometrie und Kausalität: Zur Bedeutung arbeitsmarktpolitischer Evaluationsstudien," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer;Deutsche Statistische Gesellschaft - German Statistical Society, vol. 5(1), pages 5-18, March.
    22. Lietzmann, Torsten & Schmelzer, Paul & Wiemers, Jürgen, 2016. "Does marginal employment promote regular employment for unemployed welfare benefit recipients in Germany?," IAB-Discussion Paper 201618, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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    More about this item

    Keywords

    Evaluation of active labor market policies; definition of non-treatment; comparison group concepts; propensity score matching;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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